₹1 lakh of spending today, ₹1,79,085 in 10 years
Think of the things your home buys for ₹1 lakh today: groceries, school shoes, a few doctor visits. If prices rise 6% a year, the same things will cost ₹1,79,085 in 10 years. That is ₹79,085 more for exactly what you buy now.
It works the other way round too. ₹1 lakh that you get ten years from now will buy only what ₹55,839 buys today. Same rupees, about 44% less buying power.
The formula, and the 12-year rule
Inflation compounds like interest. Each year’s rise sits on top of last year’s higher price.
Future cost = Today’s cost × (1 + inflation ÷ 100) ^ years
Worth today = Future amount ÷ (1 + inflation ÷ 100) ^ years
At 6%, ten 1.06s multiplied together (1.06 to the power 10) come to 1.79, hence ₹1,79,085. After just 5 years it is already ₹1,33,823.
For a quick feel, divide 72 by the inflation rate. 72 ÷ 6 = 12, so prices roughly double every 12 years. The calculator’s exact answer is 142.7 months, or 11 years 11 months.
Dilip-bhai’s monthly budget, 15 years on
Say Dilip-bhai in Junagadh is 45 and plans to stop working at 60. His home runs on ₹35,000 a month today: ration, the light bill, his mother’s medicines, petrol for the scooter.
Put ₹35,000, 6% and 15 years into the calculator and the answer is ₹83,880 a month. That is 139.7% more, for the same way of living. So his retirement plan has to start from ₹83,880 a month, not ₹35,000. The Retirement calculator takes it from there.
What inflation in India has actually been
RBI’s target is 4% retail inflation (CPI), within a band of 2 to 6%. As of October 2026, it is fixed till March 2031, after being kept unchanged in the March 2026 review.
Actual numbers move around a lot. As per RBI, CPI inflation averaged about 4.9% a year from late 2016 to mid-2025, against 6.8% in the years before. It was 4.6% in 2024-25 and just 2.1% in 2025-26.
So why start at 6%? For long goals, a slightly higher rate is the safer guess. And school and college fees or hospital bills often rise faster than the overall index. These are services that run on the salaries of teachers, doctors and nurses, and when you need them there is rarely a cheaper option. For such goals, try 8% or 10% too. At 10%, ₹1 lakh becomes ₹2,59,374 in 10 years.
The Goal SIP calculator now has its own inflation field: enter today’s fee and it works out the SIP for the future amount.
Is your FD keeping up?
Take a 7% FD. In the 30% tax slab, 2.1% goes as tax and you keep 4.9% (a little less after cess). With inflation at 6%, the balance grows but buys a bit less every year.
In a lower slab, or with inflation near 4%, the same FD can stay ahead. The fair comparison is the return after tax against inflation, not the rate on the bank’s board. If Dilip-bhai’s savings grow at 4.9% after tax while his budget heads to ₹83,880, that gap belongs in his plan. The FD calculator shows the actual interest.
Frequently asked questions
How do I calculate the future value of money after inflation?
Multiply today’s cost by (1 + inflation ÷ 100), once for every year. At 6% for 10 years, ₹1 lakh becomes ₹1,79,085. To go the other way, divide: ₹1 lakh you get 10 years from now is worth about ₹55,839 in today’s rupees.
What will be the value of ₹1 lakh after 20 years?
At 6% inflation, ₹1 lakh received 20 years from now will buy only what about ₹31,180 buys today. Seen the other way, something that costs ₹1 lakh today would cost about ₹3,20,714. Change the inflation rate in the calculator to see other cases.
What has inflation in India been in the last 10 years?
As per RBI, retail inflation (CPI) averaged about 4.9% a year from late 2016 to mid-2025, against 6.8% before that. It was 4.6% in 2024-25 and 2.1% in 2025-26 (RBI Annual Report, May 2026). It moves a lot from year to year, so the calculator starts at a slightly higher 6% for long goals.
What is RBI’s inflation target?
4% CPI inflation, with a band of 2% to 6%. As of October 2026, the target runs from April 2026 to March 2031, after it was kept unchanged in the March 2026 review. It is a target, so actual inflation can be above or below it in any year.
Does an FD beat inflation?
Compare the FD rate after tax with inflation. A 7% FD in the 30% tax slab leaves about 4.9% (a little less with cess), which is below 6% inflation, so buying power slowly falls. In a lower slab, or when inflation is near 4%, the same FD can stay ahead.
Calculator maintained by Manoj. Last reviewed: 21-10-2026. Rates and rules are checked against official sources. Tell us if something has changed. Contact