Inflation Calculator

See how the value of money has changed over time in India.

Value in End Year's Rupees

₹ 0

How the Inflation Calculator Works

This calculator measures the change in purchasing power of the Indian Rupee (INR) over time by using the Consumer Price Index (CPI). The CPI tracks the average change in prices paid by urban consumers for a basket of consumer goods and services.

The formula to adjust for inflation is:

End Amount = Start Amount × (End Year CPI / Start Year CPI)

By comparing the CPI values between two years, we can determine how much a certain amount of money from the past would be worth today, or vice versa.

Frequently Asked Questions (FAQ)

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power of currency is falling. For example, if the inflation rate is 5%, then a product that costs ₹100 today will cost ₹105 next year.

The Consumer Price Index (CPI) is a key economic indicator that measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is the most widely used measure of inflation.

Inflation erodes the value of your savings over time. If your savings are in a bank account with an interest rate lower than the inflation rate, your money's purchasing power is actually decreasing. To grow your wealth, your investments need to generate returns that are higher than the rate of inflation.

Purchasing power is the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Inflation decreases purchasing power. For example, ₹1,000 could buy more goods in the year 2000 than it can today due to two decades of inflation.

The CPI data used in this calculator is a standardized set for educational and demonstration purposes. Official government data can have multiple series (e.g., for industrial workers, agricultural laborers) and can be revised. This tool provides a very reliable estimate for general understanding but should not be used for official or legal calculations.