Inflation Calculator

An inflation calculator shows how the value of money changes over time as prices rise. It explains how purchasing power reduces across years because of inflation. Tools such as an inflation calculator India are often used to compare past and present values clearly. 

How Does an Inflation Calculator Work? 

An inflation calculator works by taking a starting amount and a chosen base year. It then considers an end year and an assumed inflation rate. Based on this data, an inflation rate calculator India estimates what the same amount is worth after inflation over that period. 

Inflation Calculation Formula 

Inflation is measured using the Consumer Price Index (CPI). CPI tracks changes in the prices of everyday goods and services by comparing their total cost across different years. 

First, CPI is calculated as: 

CPI = Cost of fixed basket of goods and services in the current year ÷ Cost of the same basket in the base year × 100 

Once CPI values for two years are known, inflation is calculated by comparing the change between them. In simple terms, the inflation calculation formula shows how much prices have risen from one year to the next based on CPI movement. 

This method forms the base for every inflation value calculator and inflation amount calculator, which translates price changes into money value changes. 

Example of the calculation of inflation 

To calculate inflation using the Consumer Price Index (CPI): 

Inflation (%) = ((CPI this year – CPI last year) / CPI last year) × 100 

• CPI last year = 150 
• CPI this year = 165 

Inflation = ((165 – 150) / 150) × 100 
Inflation = (15 / 150) × 100 = 10% 

So, prices increased by 10% compared to last year. 

Benefits of Inflation Calculator

Here are a few of the benefits of using an inflation calculator 

• Our inflation calculator is free; you can use it to calculate as many times as you wish. 
• Using the inflation calculator, you can check the investment opportunity of the various investment options. 
• BlinkX’s inflation calculator is simple to use; you just have to enter the amount to check the purchasing power of the same in the coming years. 
• As compared to manual calculations, BlinkX’s Inflation calculator offers you accurate results in a few seconds.