Inflation Calculator - Future Cost & Purchasing Power Inflation Calculator

What is Inflation?

Inflation is the rate at which the general level of prices for goods and services rises over time, eroding the purchasing power of money. If inflation is 6% per year, something that costs 100 today will cost 106 next year. To beat inflation, consider investing through a Systematic Investment Plan (SIP) or a Fixed Deposit.

Formula Used

Inflation � Key Facts

• Average CPI inflation globally has been around 3-6% per year over the last decade, varying by country.
• Central banks typically target inflation at 2-4% under flexible inflation targeting frameworks.
• Food inflation can be higher � often 7-10% � making grocery budgets rise faster.
• Education inflation averages 8-12% in many countries, doubling costs roughly every 6-7 years.
• Medical inflation is typically around 6-10% per year globally.

How Our Inflation Calculator Works

1. Current Cost: Enter the present-day cost of an item or service.
2. Inflation Rate: Enter the expected annual inflation rate (e.g. 6% for general, 10% for education).
3. Time Period: Number of years into the future (or past).
4. Mode: "Future Cost" shows what the item will cost after N years. "Past Value" shows what today's amount was worth N years ago.
5. Result: See the inflated cost, price multiplier, purchasing power erosion and year-wise breakdown.