Future cost of same goods
₹0
Future value of today's money
₹0
Value lost to inflation ₹0
Year-wise impact
| Year | Future cost | Value of ₹ today |
|---|
How inflation affects money
Inflation makes things cost more over time, so money buys less. Future cost = amount × (1 + inflation)ʸ shows what the same goods will cost later. Future value of today's money = amount ÷ (1 + inflation)ʸ shows the shrinking purchasing power. This is why simply saving cash loses value, and investments need to beat inflation to grow your real wealth.
FAQs
Prices rise, so money buys less. Future cost = amount × (1+inflation)ʸ; purchasing power = amount ÷ (1+inflation)ʸ.
Roughly 4-7% in recent years; ~6% is a common long-term planning assumption.