How inflation is calculated
Future cost = Today’s cost × (1 + inflation)^years
Buying power = Today’s amount ÷ (1 + inflation)^years
At 6% inflation, something costing ₹1,00,000 today will cost about ₹3,20,714 in 20 years. Prices double roughly every 12 years.
Why it matters for investing
If your savings earn less than inflation, they lose buying power even though the number in your account grows. That is why long-term goals like retirement and education should be planned in future prices. The Goal SIP and SWP calculators both have an inflation option.
Frequently asked questions
What inflation rate should I use?
Use your country’s recent average as a starting point. Costs like education and healthcare often rise faster than general prices.
What does buying power mean?
How much your money can buy. At 6% inflation, today’s ₹1 lakh buys only about ₹31,000 worth of today’s goods in 20 years.
How fast do prices double?
Roughly 72 ÷ inflation rate years. The calculator shows the exact figure.