The Inflation Calculator can help you calculate inflation based on the assumption of the annual inflation rate.
If you are living a lifestyle of 30 thousand per month and if you want to live the same lifestyle after 30 years then how much money you need.
Rate of Inflation: 6%
Start Year = 2018
End Year = 2048
Initial Price = Rs 30,000
If you calculate it you will get the following results
You will get Final results = Rs 1, 72,304
The lifestyle you are living in Rs 30,000 / month after 30 years for the same lifestyle you have to pay Rs Rs 1, 72,304 / month.
What is inflation?
Inflation is defined as a continuous increase in the prices of goods and services in a country. It is measured as an annual percentage change.
For example: If inflation of India is higher than zero, then the Indian currency gradually loses its purchasing power and its value decreases in time.
Inflation and investments
If you put Rs 10,000 money in your Bank Account and bank gives you an interest on your saving is 8%.
With given interest rate after 1 year your saving increase to Rs 10,800.
But unfortunately, Inflation will decrease the value of your money.
If the Inflation is 4% then the real value of your money is Rs 10,400.
So even though you will have Rs10,800 in your Bank Account, but the value of each rupee will be worth a bit less than it was a year earlier.