Inflation Calculator

Purchasing power is the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Inflation reduces this value over time. For example, if the inflation rate is 6%, a product that costs ₹100 today will cost ₹106 a year from now.

In India, inflation is primarily measured by the Consumer Price Index (CPI). It tracks the change in prices of a 'basket' of goods and services, including food, housing, and transportation, that are commonly consumed by households. Our calculator allows you to simulate how these rates affect your long-term goals.

If your savings account gives you a 4% return but inflation is 6%, your 'real' rate of return is -2%. This means you are actually losing wealth despite the nominal balance in your account increasing. Beating inflation is the primary goal of any robust investment strategy.

To combat inflation, investors often turn to assets that have historically outperformed the inflation rate, such as equities, real estate, and commodities (Gold/Silver). Using this calculator helps you determine the 'Target Corpus' you need, accounting for the rising costs of living in the future.