Future cost calculator
Formula: today's cost × (1 + inflation rate) raised to the number of years. Rates here are assumed for illustration; real price rises change every year.
- Cost today
- ₹50,000
- Extra you will need
- ₹1,10,357
- Cost after 20 years
- ₹1,60,357
- Today's ₹100 will buy
- ₹31 worth
| After | Cost then | Today's ₹100 buys |
|---|
Inflation rates shown are assumed for illustration. Actual prices may rise faster or slower, and different expenses rise at different speeds.
Not every bill rises at the same speed
Groceries, school fees and hospital bills each have their own pace. These rows use different assumed rates so you can see the spread. Change the numbers above to test your own.
| Expense | Today | Assumed yearly rise | In 10 years | In 20 years |
|---|---|---|---|---|
| Monthly groceries for a family of four | ₹12,000 | 6% | ₹21,490 | ₹38,486 |
| All household spends in a month | ₹50,000 | 6% | ₹89,542 | ₹1,60,357 |
| One year of private school fees | ₹1,50,000 | 10% | ₹3,89,061 | ₹10,09,125 |
| A planned surgery with a hospital stay | ₹3,00,000 | 8% | ₹6,47,677 | ₹13,98,287 |
All rates are assumed rates for illustration, not forecasts.
The quiet leak
A savings account can grow and still shrink
Say you park ₹1,00,000 at 3% a year for 10 years. The passbook shows ₹1,34,392. If prices rose 6% a year over the same decade, that ₹1,34,392 buys only what ₹75,044 bought on day one.
The balance went up. What it can pay for went down by about a quarter. That gap is why long-term money needs to earn more than the price rise, after tax.
- Kept in account
- ₹1,00,000
- Interest, assumed 3% a year
- 10 years
- Balance after 10 years
- ₹1,34,392
- Prices, assumed 6% a year
- up 1.79 times
- Buying power in today's money
- ₹75,044
A quick mental check: the rule of 72
Divide 72 by the yearly price rise. The answer is roughly how many years it takes for prices to double.
So a 32-year-old spending ₹50,000 a month today, at an assumed 6%, should expect that same lifestyle to cost around ₹2,14,594 a month at 57. Retirement plans built on today's bills fall short for exactly this reason.
What we do with this number
Turning a future cost into a monthly SIP
The calculator tells you the target. The plan tells you what to set aside each month and where to keep it.
Inflate every goal
School fees, a home down payment, retirement spends. Each gets its own assumed rate, because a hospital bill does not rise like a grocery bill.
Match the time to the category
Money needed in two years sits in debt or liquid categories. Money needed in fifteen years can take equity's ups and downs.
Work back to the SIP
We show the monthly amount, a yearly step-up if your salary grows, and review it once a year when prices and income change.
Questions people ask us
Short answers. Ask on WhatsApp if your case is different.
Which inflation rate should I put in?
For general household costs, 6% is a common working figure. For education and medical costs, many planners use 8% to 10%. The RBI's retail inflation target is 4% with a band of 2% to 6% (rules as of 2026, check current rules), but your own basket may rise faster. When in doubt, run it at two rates and plan for the higher one.
Why is my future cost so much bigger than I expected?
Because the rise compounds. Each year's increase is charged on last year's higher price, not on today's. Over 20 years at 6%, that turns ₹50,000 into ₹1,60,357, not ₹1,10,000.
Does this calculator say how much I should invest?
No. It gives the target amount. To work out the monthly SIP that could reach it, use the goal calculator or send us the numbers and we will do it with you.
Can mutual funds beat inflation?
Over long periods, equity categories have often grown faster than prices, but there are years when they fall, and nothing is promised. Mutual fund investments are subject to market risks, read all scheme related documents carefully.
Should I include inflation in my term or health cover amount?
Yes. A health cover that feels enough today may not cover a hospital bill ten years from now. Review the sum insured every few years, and size term cover on future expenses, not today's. Insurance is the subject matter of solicitation.
Get your goals checked against inflation
Tell us one goal and when you need the money. We reply on WhatsApp with the inflated target and a monthly amount to start with.
AMFI-registered Mutual Fund Distributor. ARN: [to be added]. Mutual fund investments are subject to market risks, read all scheme related documents carefully.
Related pages
Where the inflated number goes next.
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Corpus and monthly income for a lifestyle that costs more each year
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