Inflation
What a sum will cost later, and what a sum arriving later is worth today. Two different questions that long projections often mix up.
The sum
%
A negative figure models deflation.
Costs in 30 years
Rs 574,349.12
What Rs 100,000.00 buys today
Worth in today's money
Rs 17,411.01
Rs 100,000.00 arriving in 30 years
Purchasing power lost
82.59%
Measured against money today
Halves every
11.9 yrs
For money to lose half its worth
These are two different questions, not one asked twice. Rs 574,349.12 is what you will have to pay in 30 years for what costs Rs 100,000.00 now — the figure a savings target needs. Rs 17,411.01 is what Rs 100,000.00 arriving in 30 years is really worth — the figure to apply to a projection before you believe it.
Year by year
| Year | Same basket costs | Today's sum is worth |
|---|---|---|
| 0 | Rs 100,000.00 | Rs 100,000.00 |
| 1 | Rs 106,000.00 | Rs 94,339.62 |
| 2 | Rs 112,360.00 | Rs 88,999.64 |
| 3 | Rs 119,101.60 | Rs 83,961.93 |
| 4 | Rs 126,247.70 | Rs 79,209.37 |
| 5 | Rs 133,822.56 | Rs 74,725.82 |
| 6 | Rs 141,851.91 | Rs 70,496.05 |
| 7 | Rs 150,363.03 | Rs 66,505.71 |
| 8 | Rs 159,384.81 | Rs 62,741.24 |
| 9 | Rs 168,947.90 | Rs 59,189.85 |
| 10 | Rs 179,084.77 | Rs 55,839.48 |
| 11 | Rs 189,829.86 | Rs 52,678.75 |
| 12 | Rs 201,219.65 | Rs 49,696.94 |
| 13 | Rs 213,292.83 | Rs 46,883.90 |
| 14 | Rs 226,090.40 | Rs 44,230.10 |
| 15 | Rs 239,655.82 | Rs 41,726.51 |
| 16 | Rs 254,035.17 | Rs 39,364.63 |
| 17 | Rs 269,277.28 | Rs 37,136.44 |
| 18 | Rs 285,433.92 | Rs 35,034.38 |
| 19 | Rs 302,559.95 | Rs 33,051.30 |
| 20 | Rs 320,713.55 | Rs 31,180.47 |
| 21 | Rs 339,956.36 | Rs 29,415.54 |
| 22 | Rs 360,353.74 | Rs 27,750.51 |
| 23 | Rs 381,974.97 | Rs 26,179.73 |
| 24 | Rs 404,893.46 | Rs 24,697.85 |
| 25 | Rs 429,187.07 | Rs 23,299.86 |
| 26 | Rs 454,938.30 | Rs 21,981.00 |
| 27 | Rs 482,234.59 | Rs 20,736.80 |
| 28 | Rs 511,168.67 | Rs 19,563.01 |
| 29 | Rs 541,838.79 | Rs 18,455.67 |
| 30 | Rs 574,349.12 | Rs 17,411.01 |
A single rate held flat for the whole period. Real inflation moves year to year and hits different baskets differently — this is a way of seeing the shape of the effect, not a measurement of it.