Inflation Calculator

What your result means

The calculator turns one salary into a few numbers that show what inflation does to your pay over time.

The real value is the number that matters most. A salary that grows on paper but falls in real value means you can afford less each year.

How the inflation calculator works

Inflation compounds, just like interest. Each year, prices rise on top of last year’s higher prices. The calculator uses these formulas:

• Salary needed after y years = salary × (1 + inflation ÷ 100)^y
• Today’s salary worth then (in today’s money) = salary ÷ (1 + inflation ÷ 100)^y
• Your future salary = salary × (1 + raise ÷ 100)^y
• Its real value (in today’s money) = your future salary ÷ (1 + inflation ÷ 100)^y

Here, salary is your monthly pay today, inflation is the yearly rise in prices in percent, raise is your yearly increment in percent and y is the number of years ahead. All amounts are rounded to whole rupees.

How to use the inflation calculator

1. Enter your monthly salary today. The default is ₹50,000.
2. Enter the inflation rate as a percentage a year. The default is 6. RBI’s target is 4%, so planning with 5% to 7% is a safe range.
3. Enter the years ahead you want to look at. The default is 10.
4. Optionally, enter your yearly raise in percent to see whether your pay keeps up.
5. Read the results and the badge, then scroll the year-by-year table. Results update as you type.

Worked example

Rahul earns ₹50,000 a month. He assumes 6% inflation and looks 10 years ahead.

1. Growth factor: (1.06)¹⁰ ≈ 1.7908 (the calculator keeps full precision).
2. Salary needed: ₹50,000 × 1.7908 = ₹89,542 a month to live as he does today.
3. If his pay never rises: ₹50,000 ÷ 1.7908 = ₹27,920. In 10 years, his ₹50,000 will buy only what ₹27,920 buys now.
4. With an 8% yearly raise: ₹50,000 × (1.08)¹⁰ = ₹1,07,946.
5. Real value: ₹1,07,946 ÷ 1.7908 = ₹60,277 in today’s money.

So an 8% raise beats 6% inflation, and Rahul’s real pay grows by about ₹10,000 a month over 10 years. Here is how other raises compare at 6% inflation over the same period:

A 4% raise feels like growth, but in real terms Rahul ends up about 17% poorer. A raise equal to inflation only keeps him where he is.

What is inflation in India and how is it measured?

Inflation is the rate at which prices of everyday goods and services rise. In India, the main measure is the Consumer Price Index (CPI). The National Statistics Office under the Ministry of Statistics and Programme Implementation (MoSPI) releases CPI every month for rural, urban and all of India.

The Reserve Bank of India (RBI) uses CPI to run monetary policy. Under flexible inflation targeting, adopted in 2016, the target is 4% CPI inflation, with a band of 2% to 6%. If inflation stays outside this band for three quarters in a row, RBI must explain why to the Government. This happened for the first time in 2022, when inflation stayed above 6%.

Inflation in India right now (October 2026)

CPI inflation was 4.8% in August 2026, up from 4.5% in July, driven mostly by food and fuel. At its 7 October 2026 meeting, RBI projected CPI inflation of 5.2% for 2026-27, with the October to December quarter expected near 6.0%. It raised the repo rate by 0.25% to 5.50% to cool prices. So the 6% default in the calculator is close to where RBI sees inflation heading this winter, not a worst case.

A useful shortcut is the rule of 72: divide 72 by the inflation rate to find roughly how many years it takes prices to double. At 6%, that is 72 ÷ 6 = 12 years. So a monthly budget of ₹50,000 today may need about ₹1 lakh in 12 years.

What ₹1 lakh will be worth in future

The same maths works for savings. Each cell shows what ₹1 lakh kept as cash will buy, in today’s money, and in brackets the amount you would need then to match ₹1 lakh today:

At 6%, cash loses over 80% of its buying power in 30 years. That is why money for goals 10 or more years away needs to earn more than inflation.

Real vs nominal salary growth

Your nominal raise is the number in your appraisal letter. Your real raise is what is left after inflation. A quick estimate is raise minus inflation. The exact figure is (1 + raise) ÷ (1 + inflation) − 1, so an 8% raise with 6% inflation is a real raise of about 1.9%.

Your own inflation can also be higher than the CPI average. CPI tracks a typical household’s spending, but your basket may lean on costs that often rise faster, such as rent in a big city, school and college fees, or medical bills. If those make up a large part of your spending, try a higher rate, like 7% or 8%, in the calculator.

How to stay ahead of inflation

Inflation is steady and predictable, which means you can plan for it.

• Ask for raises above inflation. Use the table above in your appraisal talk. A raise below inflation is a pay cut in real terms.
• Build skills that pay more. Certifications, a new role or a job switch often add more to your income than yearly increments do.
• Invest so your money grows faster than prices. Money sitting in a savings account usually loses value after inflation. Long-term options like equity mutual funds through a SIP or a PPF account give your savings a chance to beat it. Equity returns are not guaranteed and carry market risk.
• Review once a year. Re-run the calculator after each appraisal to check you are still on track.

Limitations

• One fixed rate: real inflation changes every year. The calculator uses one rate for the whole period.
• Average, not personal: your own costs may rise faster or slower than the rate you enter.
• Gross pay only: income tax, PF and other deductions are not included. Use the Income Tax Calculator for take-home pay.
• Steady raises assumed: real careers have jumps, flat years and job changes.
• Rounding: amounts are rounded to whole rupees.

Use the results as a planning guide, not a forecast.

Key facts

• RBI’s inflation target is 4% CPI inflation, with an upper limit of 6% and a lower limit of 2%. (RBI (opens in new tab))
• In March 2026, the Department of Economic Affairs notified the same 4% target, with the 2% to 6% band, for April 2026 to March 2031. (Outlook Money (opens in new tab))
• CPI inflation was 4.8% in August 2026, and RBI projects 5.2% for 2026-27. (RBI Monetary Policy Committee, 7 October 2026 (opens in new tab))
• RBI raised the policy repo rate by 25 basis points to 5.50% on 7 October 2026 and changed its stance to calibrated tightening. (RBI (opens in new tab))
• Flexible inflation targeting was set in law in 2016 by amending the RBI Act, 1934, and the Monetary Policy Committee sets the repo rate to meet the target. (RBI (opens in new tab))
• The target is missed if average CPI inflation stays above 6% or below 2% for three quarters in a row. (RBI (opens in new tab))
• RBI publishes a Monetary Policy Report every six months, with its outlook for inflation. (RBI (opens in new tab))
• CPI for rural, urban and all of India is compiled and released every month by the National Statistics Office, MoSPI. (MoSPI (opens in new tab))