Quick answer
At 6% inflation, prices double about every 12 years. Something that costs ₹1 lakh today will cost about ₹3.21 lakh in 20 years, and ₹1 lakh kept in cash will be worth only about ₹31,000 in today’s money. RBI targets CPI inflation of 4% within a band of 2–6%.
Key takeaways
- Your investments must beat inflation after tax to create real wealth.
- Education and healthcare costs have historically risen faster than headline CPI.
- Rule of 72: 72 ÷ inflation rate = years for prices to double.
Inflation formula
Future cost = Present cost × (1 + i)n; Real value = Amount ÷ (1 + i)nFrequently asked questions
What is the current inflation rate in India?
India’s CPI inflation is published monthly by MoSPI. RBI targets 4% with a tolerance band of 2–6%. For long-term plans, 6% is a common, slightly conservative assumption.
What is the value of ₹1 lakh after 10 years?
At 6% inflation, ₹1 lakh will buy what about ₹55,800 buys today. Put another way, you will need ₹1.79 lakh to buy what ₹1 lakh buys now.
Sources & methodology
Formulas follow the standard methods used by Indian banks, fund houses and government schemes. Rates and tax rules were checked against official sources on 1 October 2026. Read our methodology.
This calculator gives an estimate for planning purposes. Actual returns, tax and eligibility depend on your situation and on product terms. It is not financial advice.