What inflation rate should I use?

Historical long-term average inflation rates vary by country and period (often cited around 4-7% for India over recent decades) — try a couple of different rates to see a realistic range rather than relying on one fixed number.

Is this the same as calculating real rate of return?

Related but not identical — this tool projects future cost/purchasing power from an inflation rate alone; real rate of return additionally factors in your investment growth rate against that inflation rate.

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Inflation & Purchasing Power Calculator

Calculate how inflation erodes purchasing power and determine future cost of living.

Currency

Current Amount

Average Inflation Rate (%)

Years into the Future

Future Purchasing Power

$50,256.59

Loss of $49,743.41 in real value

Future Cost for Same Goods

$198,978.89

Financial & Calculation Disclaimer

Burnjet provides calculators and educational tools for general informational purposes only. Results depend strictly on the mathematical assumptions you enter and do not guarantee future financial, stock market, or tax outcomes. This tool does not provide financial, investment, legal, or professional tax advice.

Quick Reference & Instructions

Simple steps, pro tips, and execution details

Enter Your Numbers

Type in your initial amounts, interest rates, or investment duration below.

Live Instant Calculation

Watch the charts, returns, and breakdown tables update immediately as you tweak numbers.

Copy or Plan Next Steps

Copy summary results or use the visual breakdown to make informed financial decisions.

How It Works

Computes future cost of goods and depreciated purchasing power over elapsed time.

Formula & Logic

Future Cost = Present Value × (1 + i)^t

Frequently Asked Questions

Common questions about calculations, assumptions, and edge cases.

If your income grows slower than inflation, your real (inflation-adjusted) purchasing power still falls even though the number on your paycheck goes up — this calculator shows what a given amount today will actually be able to buy in the future.