Calculate the erosion of purchasing power and future equivalent cost over time due to inflation.
Result
Calculated using continuous annual inflation compounding.
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Future Value = Present Value × (1 + Inflation% / 100)^Years
₹1,00,000 at 6% annual inflation over 15 years.
Future equivalent cost: ₹2,39,656 | Purchasing power loss: 58.27%.
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Open calculatorPurchasing power is the quantity of goods or services that one unit of currency can buy. Inflation directly erodes purchasing power over time.
Historically, Consumer Price Index (CPI) inflation in India has hovered between 5% and 7% per annum over long multi-decade periods.
Keeping money in low-yield savings accounts or idle cash guarantees wealth destruction in real terms. To preserve purchasing power, investments must compound at a post-tax rate exceeding headline inflation.