Protect purchasing power · Free educational tool
Inflation & Purchasing Power Calculator
See what today’s lifestyle or goal may cost later, what current money may buy in the future and whether an investment return remains positive after inflation and tax.
Built for Indian investorsInstant resultsNo sign-up requiredAssumptions remain editable
Choose a real-life starting point
Investment return and tax
Your purchasing-power result
after 20 years
Purchasing power grows in this example
How the same expense may rise
Your lifestyle can cost more even when it does not improve.
Growth is not the same as purchasing-power growth
Money you put in
₹1L
Illustrative growth
₹3.7L
Estimated tax
₹31.3K
After-tax value
₹4.3L
Value in today’s money
₹1.4L
In simple words: first tax can reduce the investment gain; then inflation reduces what the remaining money can buy.
An investment can grow while your buying power falls
A 8.0% return becomes about 7.6% a year after the selected tax estimate. Against 6.0% inflation, the compounded result is 1.5%.
Tax estimate used
Long-term listed-equity estimate: 12.5% above the entered ₹1.25 lakh-style exemption balance. Surcharge, rebates, losses, set-off, grandfathering and transaction-specific exemptions are not modelled.
Reviewed 18 August 2026 · Capital-gains guide ↗ · Specified debt funds ↗ · Slabs and cess ↗How is this calculated?
Future cost grows the current cost by the selected inflation rate. “Return after tax” first estimates tax according to the selected investment route. The calculator then compares that annualised result with inflation. Actual tax depends on the specific product, dates and your tax position.
Calculations are illustrative and intended for educational purposes only. Actual investment returns, inflation, taxation, costs and financial outcomes may differ materially. Nothing on this page constitutes investment, tax, legal or insurance advice. If you discuss an output on WhatsApp, do not share PAN, OTP, bank-account or transaction details. Read full disclaimer.
How to use this result
Understand the drivers—not only the final number.
The calculator first shows how a current cost may rise. It then applies the selected investment route’s simplified tax treatment and shows how much the remaining money may buy after inflation.
- A larger future rupee value can still buy less.
- Tax can turn a positive nominal return into a negative real return.
- Different expenses may inflate at different rates.
Learn more about this decision
Continue with the relevant framework.
Calculator FAQs
Short answers before you rely on the result.
What inflation rate should I use?
Test a range. General living costs, education, healthcare, property and travel can follow different paths.
Why can education inflation be different?
Fees reflect institution capacity, wage costs, regulation and demand, which may not move with a broad consumer-price index.
What is real return?
It means how much your buying power changed after rising prices. A positive rupee return can still produce a weak or negative real return.
Can fixed deposits beat inflation?
They can in some periods, but the relevant comparison is the post-tax FD return against inflation over the same period.