Inflation Calculator - Calculate Inflation in India

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Current Cost

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Rate of Inflation(p.a.)

Time Period

Current Cost

Cost Increase

Future Cost

Frequently Ask Questions

An inflation calculator is an online tool that helps you calculate the impact of inflation on the purchasing power of your money over time. It takes into account the current value of money, the rate of inflation, and the period to provide an estimate of the future value of your money. This can help you understand the impact of inflation on your savings, investments, and purchasing power and make informed financial decisions accordingly.

An inflation calculator works by taking inputs such as the current value of money, the rate of inflation, and the time period, and calculating the future value of money adjusted for inflation. It uses a formula that takes into account the compounding effect of inflation over time, which can significantly erode the purchasing power of money. By using this tool, you can get an estimate of the future value of your money and plan your finances accordingly, taking into account the impact of inflation.

To calculate inflation manually, you need to follow these steps:

Choose a base year: Select a year to serve as the starting point for calculating inflation.
Determine the price index for the base year: The price index is a measure of the average price of goods and services in the base year. You can obtain this data from official sources such as the government or central bank.
Determine the price index for the current year: Obtain the current year's price index using the same source as in step 2.
Calculate the inflation rate: Subtract the price index of the base year from the price index of the current year, and then divide the result by the price index of the base year. Multiply the result by 100 to express the inflation rate as a percentage.

For example, if the price index in the base year was 100 and the current year's price index is 120, the inflation rate would be [(120-100)/100] * 100 = 20%.

Inflation

Frequently Ask Questions

What is an inflation calculator?

How does an inflation calculator work?

How do I calculate inflation manually?