Project the future cost of today's money

Name: Salary Calculator
Brand: Superworks
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See what inflation does to your purchasing power. Plan goals in future-value terms, not today's.

CPI Based Live Calculation Visual Breakdown

Inflation details

India\'s long-term CPI inflation has averaged 6-7%. Adjust based on what you\'re pricing.

Amount today

Inflation rate (% p.a.)

Years from now

Future cost

₹1.79 L

What ₹1.00 L worth today will cost in 10 years

Today's amount₹1.00 L

Inflation rate6% p.a.

Period10 years

Purchasing power lost₹55,839

Lost in real terms₹44,161

Price increase79.1% more expensive

How inflation erodes value

Inflation is the rate at which prices increase year over year. ₹100 today buys less tomorrow. Investments must beat inflation to grow real wealth.

01
Pick rate
India CPI averages 5-7%. Education inflation: 10-12%. Healthcare: 12-15%. Real estate: 6-8%.
```
rate = 6%/yr
// general CPI
```
02
Future cost
Same goods/services cost more in the future. Calculator inflates the amount.
```
FV = P × (1 + rate)^years
```
03
Purchasing power
Reverse: how much today's amount really buys in the future, in today's rupee value.
```
real = P ÷ (1 + rate)^years
```

FormulaFV = PV × (1 + inflation)^yearsUse this to inflate your future goals (e.g., child's college) before deciding how much to invest.

Why we use this formula by default.
Indian payroll convention, statutory references, and the SaaS tooling that runs payroll all converge on this approach. Below are the authoritative sources we cross-checked.

Regulator

RBI Monetary Policy

India inflation targeting (4 ± 2%) framework by RBI.

Official Data

MOSPI CPI Releases

Official Consumer Price Index monthly releases from MOSPI.

Macro Reports

RBI Financial Stability Report

Biannual RBI report on inflation, growth, and macro stability.

Global Data

World Bank Inflation Data

Country-wise inflation comparison and historical data.

Definition

Investopedia Inflation

Inflation theory, measurement, and PV/FV reverse calculation.

Theory

CFA Institute Real vs Nominal

CFA framework for real returns and inflation-adjusted analysis.

FAQs about inflation

What is the current inflation rate in India?

Headline CPI inflation: around 5-6% (2025 average). Long-term (last 20 years): ~6.5%. Goal-specific inflation: education 10-12%, healthcare 12-15%, food and lifestyle 5-8%.

How does inflation affect my savings?

A savings account at 3% with inflation at 6% means your money loses 3% real purchasing power per year. Over 20 years that compounds to nearly 50% loss in real terms. Beat inflation by investing.

What investments beat inflation?

Long-term: equity mutual funds, index funds (10-14% returns easily beat 6% inflation). Medium term: corporate bonds, hybrid funds (8-10%). Short term: liquid funds, FDs barely beat inflation post-tax.

Should I plan goals in today's money or future money?

Always future money. If a college degree costs ₹20L today, in 10 years at 10% inflation it'll cost ₹52L. Plan investments to hit ₹52L, not ₹20L.

What is real return vs nominal return?

Nominal return = headline return (e.g., 12% p.a.). Real return = nominal − inflation. If your SIP earns 12% with 6% inflation, real return is 6% — your actual purchasing power gain.

Why is healthcare inflation so high?

Specialized treatments, hospital costs, medical equipment, and insurance premiums all rise faster than general inflation. Plan medical corpus with 12-15% inflation assumption.

Is gold a good inflation hedge?

Mixed. Over very long periods (30+ years), gold has roughly matched inflation. Over shorter periods, gold is volatile and may underperform. Hold 5-10% in gold as portfolio insurance, not as primary inflation hedge.

What happens to my EMI in inflation?

EMIs are fixed in nominal terms. As your salary rises with inflation, the EMI becomes a smaller share of income — effectively cheaper over time. This is why housing is often called an "inflation-friendly" debt.

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Project the future cost of today's money

Inflation details

How inflation erodes value

Pick rate

Future cost

Purchasing power

RBI Monetary Policy

MOSPI CPI Releases

RBI Financial Stability Report

World Bank Inflation Data

Investopedia Inflation

CFA Institute Real vs Nominal

FAQs about inflation

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