Purchasing Power Calculator
See what an amount of money can buy after prices change, forward or backward in time.
Purchasing Power Calculator
Comma-separated, oldest year first, for example 4.5, 6, 5.2. Overrides the average for those years; remaining years use the average.
Result
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Loss of Buying Power
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Cumulative Price Level
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Needed to Match Today
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Buying power over time
Year-by-Year Price Changes
| Year | Inflation rate | Price level (start = 1) | Amount needed to match (₹) | Buying power of amount (₹) |
|---|
Assumptions & method
- Price level after year t = Π (1 + inflation in year k) for k = 1…t. Year 0 is the start of the period and has a price level of 1.
- Forward: buying power of the amount in start-year money = amount ÷ price level. The amount needed later to match today's buying power = amount × price level.
- Backward: a past amount is worth amount × price level in today's money. Year 0 is the past start date and the last year is today.
- Each year uses the optional yearly rate if you gave one, otherwise the average rate. Yearly rates are listed oldest year first. Extra rates beyond the number of years are ignored.
- The effective yearly rate shown in the summary is the geometric average, (final price level)^(1/years) − 1.
- Inflation differs by country, period and by what you buy. A single inflation rate is a simplification, and the result is not a forecast. Interest earned on the money is not included.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
What is purchasing power?
Purchasing power is how much a unit of money can buy. When prices rise, each rupee buys less, so the same amount holds less real value over time. Going forward, the calculator shows what an amount will buy in the future in today's terms and how much more you would need to keep the same standard. Going backward, it shows what an old amount, such as a past salary or price, is equivalent to today. Prices rarely rise at one steady rate, so you can paste yearly rates and the model compounds each one in turn. Because inflation differs by country, period and by what you buy, use rates from a trustworthy local source and test a higher and lower case.