Purchasing-power depreciation modeler.
Real value in 20 years
₹3.12 L
Lost 68.8% of purchasing power at 6% inflation
Today's Value
₹10 L
Real Value (Yr 20)
₹3.12 L
Purchasing Power Lost
₹6.88 L
68.8% erosion
Real Value = Nominal ÷ (1 + i)ⁿ. At 6% inflation, ₹10 lakh today buys what only ~₹3.1 lakh buys in 20 years — a 69% erosion of purchasing power.
Always plan long-term goals in real (inflation-adjusted) terms, not nominal. Healthcare and premium education inflation in India run materially higher than CPI — model them at 10-12%.
Real value = Nominal × (1 / (1+i)ⁿ), where i is annual inflation. At 6% inflation, ₹1 lakh today buys what only ₹55,840 buys in 10 years — a 44% loss of purchasing power. This is why parking long-term money in savings accounts is a slow-motion wealth destruction.
CPI inflation has averaged 5-7% over the last 20 years. Healthcare and education inflation run materially higher at 10-12% — critical to model separately when planning for medical and child-education goals.
Invest in assets that grow faster than inflation: equity (12-14% CAGR), real estate (8-10%), gold (8% long-term). Fixed deposits at 6.5% barely match inflation post-tax. The single biggest wealth-destroyer for Indian middle-class is excess savings-account balance.
Use 6% as a base case and 7% as a conservative case. For healthcare and premium education goals, model 10%. The calculator's slider lets you stress-test multiple assumptions — always plan to the higher end so reality surprises you positively.