Purchasing Power Erosion
Future Money Needs
Calculate how inflation reduces your purchasing power over time.
Results
With an average inflation rate of 5.0% per year:
Your ₹1,000.00 today will be worth:
₹773.78
That's a 22.62% decrease in purchasing power.
Year-by-Year Breakdown
| Year | Purchasing Power | % of Original Value |
|---|---|---|
| Today | ₹1,000.00 | 100.00% |
| Year 1 | ₹950.00 | 95.00% |
| Year 2 | ₹902.50 | 90.25% |
| Year 3 | ₹857.38 | 85.74% |
| Year 4 | ₹814.51 | 81.45% |
| Year 5 | ₹773.78 | 77.38% |
Calculate how much money you'll need in the future to maintain the same purchasing power you have today.
Results
With an average inflation rate of 5.0% per year:
To maintain the same purchasing power as ₹1,000.00 today, you will need:
₹1,276.28
That's a 27.63% increase required to match inflation.
Year-by-Year Breakdown
| Year | Money Needed | % Increase from Today |
|---|---|---|
| Today | ₹1,000.00 | 0.00% |
| Year 1 | ₹1,050.00 | 5.00% |
| Year 2 | ₹1,102.50 | 10.25% |
| Year 3 | ₹1,157.63 | 15.76% |
| Year 4 | ₹1,215.51 | 21.55% |
| Year 5 | ₹1,276.28 | 27.63% |