How Inflation Calculator Works
This calculator shows two things: (1) How much something that costs a certain amount today will cost in the future, and (2) How much the purchasing power of your current money will decrease over time.
For example, if a product costs Rs 1,00,000 today and inflation averages 6% per year, that same product will cost Rs 1,79,085 in 10 years. Conversely, Rs 1,00,000 today will only buy Rs 55,839 worth of goods in 10 years.
How to Beat Inflation
To maintain and grow your purchasing power, your investments must earn returns higher than inflation. Fixed deposits at 7% barely beat 6% inflation. SIP in equity mutual funds (historical returns 12-15%) can significantly beat inflation over 10+ year periods. Real estate, gold, and NPS are other options to consider.
The key is to start investing early. Even small monthly SIPs of Rs 2,000-5,000 can grow into substantial wealth over 15-20 years through the power of compounding, helping you stay ahead of inflation.