India Inflation Rate Calculator
Understanding inflation is crucial for making informed financial decisions in India. Inflation refers to the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. This calculator helps you estimate the impact of inflation on the value of money over time in the Indian context.
How Inflation Affects Your Money
Inflation erodes the purchasing power of your money over time. This means that the same amount of money will buy fewer goods and services in the future than it does today. For example, if the inflation rate in India is 5% per year, then what costs ₹100 today will likely cost ₹105 next year. Over several years, this effect becomes more pronounced. This calculator quantifies this effect, showing you the future value of your money adjusted for inflation. It's essential for long-term financial planning, retirement savings, and understanding the real return on your investments.
The formula used is: Future Value = Initial Value * (1 + (Annual Inflation Rate / 100)) ^ Number of Years
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max-width: 600px;
margin: 20px auto;
padding: 20px;
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function calculateInflationImpact() {
var initialValue = parseFloat(document.getElementById("initialValue").value);
var annualInflationRate = parseFloat(document.getElementById("annualInflationRate").value);
var numberOfYears = parseFloat(document.getElementById("numberOfYears").value);
var resultDiv = document.getElementById("result");
if (isNaN(initialValue) || isNaN(annualInflationRate) || isNaN(numberOfYears) || initialValue < 0 || annualInflationRate < 0 || numberOfYears < 0) {
resultDiv.innerHTML = "Please enter valid positive numbers for all fields.";
return;
}
var inflationFactor = 1 + (annualInflationRate / 100);
var futureValue = initialValue * Math.pow(inflationFactor, numberOfYears);
var inflationLoss = initialValue – futureValue;
resultDiv.innerHTML = `
The future value of ₹${initialValue.toFixed(2)} after ${numberOfYears} years, with an average annual inflation rate of ${annualInflationRate}%, would be approximately ₹${futureValue.toFixed(2)}.
This means your money would lose approximately ₹${inflationLoss.toFixed(2)} in purchasing power over this period.
`;
}