Purchasing Power Calculator

Estimate how much a current amount may be able to buy in the future after accounting for inflation.

Loss of %

How purchasing power is calculated

The calculator uses Future purchasing power = Current amount ÷ (1 + Inflation rate)Years. The drop percentage compares that inflation-adjusted value with the current amount.

Meaning

The result is expressed in today's purchasing-power terms, not a predicted account balance.

Inflation

One constant annual rate is compounded across the full period.

Scope

Different goods and services can experience inflation above or below the entered average.

Worked purchasing-power example

At a constant 6% inflation rate for 20 years, ₹1,00,00,000 has estimated purchasing power equivalent to:

Current amount
₹1,00,00,000
Estimated drop
68.8%
Future purchasing power
₹31,18,047

Frequently asked questions

Does inflation make my account balance fall?

Not necessarily. Purchasing power measures what money can buy. A nominal balance may stay unchanged while its real buying capacity falls.

Will inflation remain constant?

No. Actual inflation changes over time. The constant rate is a planning assumption for comparing scenarios.

Should every goal use the same inflation rate?

Not always. Education, healthcare, housing, and general expenses may rise at different rates.