What is it & why use it?
Calculate the effect of inflation on money and estimate future value or purchasing power easily. This tool on Calci.in helps you understand how inflation affects savings and investments over time.

Formula (explained)
FV = PV × (1 + i)^t
Variables: FV = Future Value, PV = Present Value, i = Inflation rate, t = Years.

Example calculation
₹10,00,000 today at 6% inflation for 20 years → Future value needed ≈ ₹32,07,135 to match purchasing power.

Benefits & use cases
• Understand value erosion
• Plan investments to beat inflation
• Compare real vs nominal returns

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External references (authority sources)
RBI
Trading Economics – India Inflation

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FAQs
Q1: Why is inflation important?
A: Because it reduces the purchasing power of money over time.
Q2: What is a good investment to beat inflation?
A: Equities and mutual funds generally outperform inflation over long periods.
Q3: Is inflation constant?
A: No, it varies year to year based on economic conditions.
Q4: Does this calculator use real data?
A: It uses the inflation rate you input to project value erosion.