Inflation & Real-Returns Calculator

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See how inflation quietly shrinks your money — and what your returns are really worth after it.

What will your money be worth?

Amount today

₹

Inflation rate (per year)

Years from now

What's your real return?

A return only builds wealth if it beats inflation. This is your return after inflation.

Investment return (per year)

Inflation rate (per year)

Educational estimates using a constant inflation rate. India's long-run retail inflation has averaged roughly 5–6%, but it varies year to year — use a rate you find realistic.

Plan with real numbers

Factor inflation into your goals so your targets keep their real value.

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How the inflation & real-returns calculator works

Updated 20 July 2026

In short

This calculator shows what something costing a given amount today will cost after some years of inflation, and how much today's money will be worth in future purchasing power. It can also convert a nominal investment return into a real (after-inflation) return.

The formula

Future cost = A × (1 + i)^n · Future value of money = A ÷ (1 + i)^n · Real return = [ (1 + nominal) / (1 + i) − 1 ] × 100

A = amount today
i = assumed annual inflation ÷ 100
n = number of years
nominal = your investment's stated annual return

How it's calculated

1Compounding factor = (1 + inflation rate)^years.
2Multiply today's cost by the factor → what it will cost in future.
3Divide today's money by the factor → what that money will buy in future (its real value).
4Real return uses the Fisher relation: (1 + nominal) ÷ (1 + inflation) − 1 — not simply nominal minus inflation.

Assumptions & limits

•Inflation is assumed CONSTANT for the whole period; actual CPI inflation varies year to year.
•A single average rate is used; your personal inflation (rent, school fees, healthcare) may differ from headline CPI.
•The real-return figure is the exact Fisher equation, which is slightly more accurate than “return minus inflation.”

Frequently asked questions

Is real return just return minus inflation?

Close, but not exact. The precise figure divides (1 + return) by (1 + inflation). At low rates the two are similar; at high rates the shortcut overstates your real return.

What inflation rate should I use?

India's headline CPI inflation is published monthly by MOSPI, and the RBI targets 4% (±2%). Many people use around 6% as a long-run planning figure, but your personal basket may inflate faster.

Why does inflation matter for investing?

A return that doesn't beat inflation loses purchasing power. Real (after-inflation) return is what actually grows your wealth.

Sources

RBI — flexible inflation-targeting framework (4% ±2%)
Basis for the RBI's 4% CPI target with a ±2% tolerance band.
MOSPI — Consumer Price Index (CPI)
India's official CPI inflation data, published monthly.
Fisher equation (standard economics)
The exact real-return relation between nominal return and inflation.

Learn the idea behind this

This tool gives you a number. These free WealQuest lessons explain the idea it rests on — in English and हिंदी, no sign-up.

This explains the maths behind the tool so you can trust the number. It is educational information, not financial advice.