Calculate the silent erosion of your purchasing power over time. Determine what your current monthly living expenses will cost in 5, 10, 15, or 25 years, and see how much ₹100 of purchasing power dissolves.
📉 Inflation Parameters
📅 Future Cost Projection Trajectory
Year-by-Year| Year | Monthly Cost | Annual Cost | ₹100 Real Value | Price Jump |
|---|
📉 The Silent Wealth Killer
Official CPI headline inflation (4% to 5%) tracks raw food and fuel baskets. True urban middle-class lifestyle inflation — including private schooling, premium healthcare, electronics, and rental housing — averages 7% to 9% every year.
📊 Real Return vs Nominal Return
If your Fixed Deposit yields 7.0% nominal return, but you pay 30% income tax (leaving 4.9% post-tax) while inflation runs at 6.5%, your real post-tax purchasing power shrinks by -1.6% every year. Cash in bank loses real value.
🛡️ Asset Classes That Beat Inflation
To maintain your living standards in retirement, your portfolio must beat inflation after taxes. Historically in India, Equity Mutual Funds (12%–14% CAGR), Sovereign Gold Bonds, and prime Real Estate are the only asset classes that consistently outpace long-term inflation.