Inflation Impact & Real Wealth Calculator
See what your savings will actually be worth after inflation. Defaults use the latest headline CPI inflation print (4.82%) published by MoSPI.
Your assumptions
After 10 years
Nominal value
₹19.67 L
Real purchasing power
₹12.29 L
- Value lost to inflation
- ₹7.39 L
- Real return (inflation-adjusted)
- +2.08% p.a.
- ₹10.00 L in today's money, 10y from now
- ₹6.25 L
- Return needed just to break even
- 4.82% p.a.
- Money halves in value in
- 14.7 years
Purchasing power over time
| Year | Nominal value | Real value | Lost to inflation |
|---|---|---|---|
| 1 | ₹10.70 L | ₹10.21 L | ₹49,202 |
| 3 | ₹12.25 L | ₹10.64 L | ₹1.61 L |
| 5 | ₹14.03 L | ₹11.08 L | ₹2.94 L |
| 10 | ₹19.67 L | ₹12.29 L | ₹7.39 L |
Calculations assume annual compounding and a constant inflation rate across the full horizon. Real purchasing power is nominal value divided by cumulative price growth. This is an educational tool, not investment advice.
Frequently asked questions
How do you calculate the real value of money after inflation?
Real value is the nominal future value divided by cumulative price growth. If money grows at g percent a year for n years while inflation runs at i percent, real value equals the starting amount times (1+g)^n divided by (1+i)^n. The real return rate is ((1+g)/(1+i) - 1) x 100.
What return do I need just to beat inflation in India?
You need a post-tax return higher than the headline CPI inflation rate. With inflation near 5 percent, a savings account paying 3 percent loses purchasing power every year, and a fixed deposit at 7 percent delivers roughly 2 percent of real growth before tax.
How fast does inflation halve the value of money?
At 5 percent annual inflation, money loses half its purchasing power in about 14 years. At 6 percent it takes around 12 years, and at 4 percent about 18 years. The formula is log(2) divided by log(1 + inflation rate).
Which inflation rate should I use for planning?
Headline CPI inflation published by MoSPI is the standard benchmark and the rate the RBI targets. For long-horizon planning, many people use the RBI's 4 percent target midpoint as a base case and stress-test against the 6 percent upper tolerance band.