Understanding Inflation Impact on Your Money

Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. Understanding how inflation affects your savings and investments is crucial for making informed financial decisions.

Why Calculate Inflation?

Even modest inflation rates can significantly impact your purchasing power over time. For example, with a 6% annual inflation rate, ₹100,000 today would only have the purchasing power of approximately ₹55,839 after 10 years.

How to Use This Calculator

Enter your current amount (the money you have now)
Specify the annual inflation rate (the average is around 6-7% in India)
Set the time period in years
Click "Calculate Inflation Impact" to see the results

Inflation-Beating Investment Strategies

To combat inflation, consider investments that historically outpace inflation rates:

Equity investments through mutual funds or direct stocks
Real estate investments in growing markets
Gold and other precious metals as inflation hedges
Index-linked bonds that adjust returns with inflation

Remember that inflation calculations are estimates based on consistent inflation rates, but actual inflation can vary year to year. Regular financial planning helps adjust strategies as economic conditions change.

Inflation Calculator