Worried about Inflation? Know the future value of your money
The Inflation based Future Value Calculator is pretty useful for those who are worried about the rising inflation and would like to know the future value of their money. It is also popularly known as Inflation Calculator. Such Calculators are used by major personal finance portals to generate awareness and to give a fair idea of purchasing power in the future. InvestmentYogi provides a very simple calculator for knowing the future value of money based on inflation (general price rise).
Why should you use this calculator?
If you are constantly watching the state of Indian economy and rising inflation, be it CPI (Consumer Price Index) or WPI (Wholesale Price Index), this calculator is for you.
How to use this calculator?
The entries to make are:
Monthly Expenses (Rs) – Enter the total monthly expenses that you incur such as groceries, emi, entertainment, etc. You can also enter an yearly value. The result will then give future value on an yearly basis.
Inflation Rate p.a – Enter the assumed/estimated annual inflation rate for the coming few years. The average inflation for the past 10 years is assumed to be around 6% p.a. However, you can also enter a different value.
Number of years – Enter the number of years after which you want to check the purchasing power of your money.
Once you enter these values and click on submit, the result would be stating the purchasing power or the eroded value of your money in the future.
When should you use this Calculator?
This calculator is to be used by those who are eager to know the decreased value of their money if kept idle for few years.
Can it be used in any other situation?
This Inflation Calculator is specifically used for the above said purpose. It cannot be used in any other situation.
Frequently asked questions about Inflation
Some frequently asked questions related to Inflation are answered in the following articles:
Inflation – The Silent Killer – This article briefs about a silent demon called Inflation, which eats away the value of money. It tells you what inflation is, what causes inflation and how to protect yourself from it.
Impact of Inflation on Savings and Investments – The article describes the impact of inflation on your savings and investments. It also talks about an important aspect in maintaining a stable portfolio – Diversification. The effects of inflation in various stages of life are also properly detailed along with appropriate solutions.