Inflation Calculator: What will your ₹5 crore be worth in three, five or ten years?

Inflation has a direct impact on financial security. High inflation reduces purchasing power and harms long-term savings. Money saved for long-term goals such as retirement or education is gradually losing value due to increasing living costs.

What is inflation?

Simply put, inflation is the gradual increase in the cost of daily products and services. This means you can now buy less with your available money. For example, when inflation is strong, you may observe that food, oil, and clothing prices rise and your income or savings may not go as far as they used to. Essentially, inflation reduces the value of money and makes it harder to buy the same products later.

Inflation calculator

Inflation Calculator helps you calculate the future value of money based on Inflation rate. For example, you can calculate its value. ₹5, 10, 15 crores after 1, 3, 5 years and 10 years based on inflation rate and simple formula.

The value after inflation is the current amount raised to the power of the number of years × (1−inflation rate/100).

India’s current inflation rate of 6.21% will be used for this purpose.

for 1 year

Value = 50000000 x (1 – 0.06)

Value after inflation = 10000000×0.94 = 4,70,00,000

In simple terms: If inflation is 6%, ₹It will be worth 5 crore ₹4.7 crore a year later.

for 3 years

Value = 50000000 x (1 – 0.06)^3

Value = 50000000 x 0.835216

3 years later, ₹It will be worth 1 crore ₹4.17 crore

for 5 years

Value = 50000000 x (1 – 0.06)^5

Value = 50000000 x 0.747258

In simple terms, if inflation is 6%, ₹It will be worth 5 crore ₹3.7 crore after five years.

for 10 years

Value = 50000000 x (1 – 0.06)^10

Value = 50000000 x 0.4228

In simple terms, if inflation is 6%, ₹It will be worth 5 crore ₹2.1 crore after ten years.

Let’s say you want to reach your retirement goal ₹5 billion dollars in 10 years. In this case, you need to take inflation into account and replace your savings so that their future value remains constant. ₹5 crore is equal to its current value.

Here’s how to calculate it:

Formula: Future Value = Present Value × (1 + Inflation Rate) ^ Number of Years

Present Value: ₹5 crore (your target retirement corpus)

Inflation Rate: 6% or 0.06

Future Value: 50000000×(1+0.06)10

FutureValue=5,00,00,000×(1+0,06) 10

Future Value: 5,00,00,000×(1.06)10

FutureValue=5,00,00,000×(1,06) 10

FutureValue=5,00,00,000×1,7908≈8,95,40,000

with 6% inflation rateyou should save about ₹8.95 crore in ten years to achieve your retirement goal ₹5 crore in today’s currency.

Due to rising food costs, retail inflation in October exceeded the Central Bank’s upper tolerance level and rose to 6.21%, the highest level in 14 months. While consumer price index (CPI) based inflation was 5.49 percent in September, it was 4.87 percent in the same month last year.

Following its last monetary policy review in October, the RBI kept the short-term lending rate at its current level, citing inflation concerns.

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