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Calculate the impact of inflation on purchasing power and money value
India's average inflation: 4-7% (last decade)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. Understanding inflation helps in financial planning and investment decisions.
₹0
What costs ₹1,00,000 today will cost ₹0 in 10 years, assuming 6% annual inflation.
To maintain purchasing power, your investments must beat inflation:
| Year | Value | Cumulative Increase | % Change |
|---|---|---|---|
| 1 | ₹1,06,000 | ₹6,000 | 6.0% |
| 2 | ₹1,12,360 | ₹12,360 | 12.4% |
| 3 | ₹1,19,102 | ₹19,102 | 19.1% |
| 4 | ₹1,26,248 | ₹26,248 | 26.2% |
| 5 | ₹1,33,823 | ₹33,823 | 33.8% |
| 6 | ₹1,41,852 | ₹41,852 | 41.9% |
| 7 | ₹1,50,363 | ₹50,363 | 50.4% |
| 8 | ₹1,59,385 | ₹59,385 | 59.4% |
| 9 | ₹1,68,948 | ₹68,948 | 68.9% |
| 10 | ₹1,79,085 | ₹79,085 | 79.1% |
How inflation of 6% will affect common expenses in 10 years:
Inflation is the rate at which the general level of prices for goods and services rises, causing purchasing power to fall. When inflation occurs, each unit of currency buys fewer goods and services. It's measured as an annual percentage increase.