Inflation Calculator: What ₹1 Crore of 2025 Will Be Worth in 2035?

Inflation slowly eats away at the value of money by increasing the price of goods and services. What seems like a large amount today may not stretch as far in future. Through a simple example of 2 friends reminiscing about college days, we explore how inflation reduces purchasing power and why understanding this is important.

Conversation at the College Canteen

Ram and Shyam return to their old college canteen after many years. They start recalling the days when a cup of tea and a plate of vada pav cost only ₹5 back in the mid-2000s. The fond memory soon meets reality as they realise that in 2025, the same treat now costs around ₹30. This sparks a conversation on how prices rise over time and how this silent change in cost is called inflation.

Inflation Calculator Shows Real Impact

Ram explains to Shyam that inflation makes the value of money fall because higher prices mean you can buy fewer items with the same amount. He uses an inflation calculator to show how ₹1 crore today would not hold the same worth in ten years if prices continue rising at 6% every year.

How the Value of ₹1 Crore Changes

If the inflation rate remains at 6%, the future value of ₹1 crore in 10 years would rise to ₹1,81,40,184. At first glance, this seems like more money. However, this number only reflects the inflated price level in the future. In reality, the buying ability of ₹1 crore shrinks.

• Initial Amount: ₹1,00,00,000
• Future Value (after 10 years at 6% inflation): ₹1,81,40,184
• Adjusted Value: ₹81,40,184

This means ₹1 crore today will only have the buying strength of ₹81,40,184 in future when adjusted for inflation. You can use an inflation calculator to estimate the real value of ₹1 crore in future, based on your expected inflation rate.

Read More: How Inflation Impacts ₹1 Crore Over a Decade: Cash vs Gold vs Index Funds! 

Conclusion

Ram concludes by telling Shyam that inflation reduces real wealth. What feels like financial security today may not offer the same comfort in future if inflation continues to grow. The rise in the cost of a simple tea and vada pav over the years is a reminder that holding money without considering inflation slowly erodes purchasing strength.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.