1. What is the Inflation Calculator?

The Inflation Calculator estimates how much money in the past would be worth in today's rupees, or how much today's money would be worth in the future based on India's inflation rate.

2. How Does the Calculator Work?

The calculator uses the inflation equation:

Where:

• \( \text{Original} \) — Original amount in INR
• \( \text{India Rate} \) — Annual inflation rate in percentage
• \( \text{Years} \) — Number of years for calculation

Explanation: The equation accounts for compound inflation over multiple years.

3. Importance of Inflation Calculation

Details: Understanding inflation helps in financial planning, retirement savings, and comparing purchasing power across different time periods.

4. Using the Calculator

Tips: Enter original amount in INR, India's inflation rate in percentage, and number of years. All values must be valid (amount > 0, rate ≥ 0, years > 0).

5. Frequently Asked Questions (FAQ)

Q1: What is India's average inflation rate?
A: Historically, India's average inflation rate has been around 6-7%, but it varies year to year.

Q2: How accurate is this calculator?
A: It provides an estimate based on constant inflation rate. Actual inflation rates fluctuate annually.

Q3: Can I use this for salary adjustments?
A: Yes, it can help estimate future salary requirements to maintain purchasing power.

Q4: Does this account for different inflation rates?
A: No, it uses a single constant rate. For more accuracy, you'd need year-by-year rates.

Q5: Why is inflation calculation important for investments?
A: It helps determine real returns by accounting for loss of purchasing power.