How inflation adds up
Future cost = today's cost × (1 + inflation)years
At 6% inflation, something that costs ₹1 lakh today will cost about ₹1,79,085 in 10 years, and ₹1 lakh kept in cash will buy only about ₹55,839 worth of today's goods. Use this when setting targets for goals like a child's education or retirement.
Questions people ask
What inflation rate should I use?
India’s retail inflation (CPI) has averaged roughly 5–6% over the long run, though it varies year to year. Costs like education and healthcare have often risen faster, so many planners use 8–10% for those.
Why does inflation matter for savings?
If your savings earn less than inflation, they lose buying power even as the number grows. That’s why long-term goals usually need investments that can beat inflation.
Method and sources
Future cost = amount × (1 + inflation)^years. Future value of today's money = amount ÷ (1 + inflation)^years. How we calculate.
Last reviewed 22 Oct 2026 by the WealthFeedz team.