What is a Forward Inflation Calculator?

A Forward Inflation Calculator is used to help you find the future value of money by factoring in the effects/impact of inflation over a defined interval of time. Because inflation will reduce purchasing power, you can use this to help you work out how much your savings, investments, or expenses will be worth in real terms many years into the future.

For example:

• How much will ₹10,00,000 be worth in 10 years time assuming the inflation rate averages 6% per year?
• What is the cost of goods or services after it has been affected by inflation in the long term?

Unlike basic calculators that help you calculate simple calculations, the Forward Inflation Calculator calculates the compound effect of inflation, providing realistic and accurate assumptions. You can use it as an inflation rate calculator, future value calculator, or an inflation adjustment calculator; it could be cost-effective for long-term financial future purposes, retirement expectancy, or budgeting.

How Does Inflation Impact Savings?

Inflation means that money buys you less goods and services in the future. For example, if you spend ₹5,000 today on groceries, and your inflation is an average of 6% per year, a decade from now you could be spending over ₹9,000 for the same groceries.

A Backward Inflation Calculator will allow you to budget those anticipated future costs and to make sure that your projected saving plan is factoring in those costs. It allows you to gauge that your retirement corpus, emergency fund, or investment portfolio isn't getting behind, due to inflation and rising costs.

Forward Inflation Calculator Formula

The formula used is:

FV = PV × (1 + r) ^ n

• FV = Future Value
• PV = Present Value (current money)
• r = Annual Inflation Rate (in decimals)
• n = Number of years

This formula applies the compounding effect of inflation, which is why long-term estimates are crucial for financial planning.

Example – Future Value with Inflation

Suppose you have ₹5,00,000 in savings, and the inflation rate is expected to remain at 6% annually for 15 years.

Using the formula:
FV = 5,00,000 × (1 + 0.06)^15
= ₹11,96,618 (approx)

This means in 15 years, you would need nearly ₹12 lakh to match the purchasing power of ₹5 lakh today.

Key Features of Our Forward Inflation Calculator

• Instant Calculation - get accurate numbers in seconds
• Evaluates Long Range Impacts - assess up to 50 years in inflation
• Retirement and Wealth Planning - must-have for pensions, retirement corpus, education funds and more
• Scenario Analyzer - change inflation rate and duration to compare more than one outcome
• 100% Free and Available Online - no registration or downloading needed.

Why Use Our Inflation Calculator?

• Obtain Accurate Future Value Assessments - to identify the impact of today's savings in the future
• Better Planning - use our functional tool to help you plan with more accurate projections, whether you are planning for retirement, children's education, big-ticket purchases, etc.
• Loan vs. Investment Comparison - assist in comparing the impact of a loan vs. an investment, or what inflation may do to your debt repayments vs. your invested growth
• Guard Against Under-Saving - avoid miscalculating your long-term financial needs in today’s rupees
• User-Friendly Tool - provides a clear overview of your results with immediate output, making it handy for professionals and individuals.