Future cost = Current cost × (1 + inflation%)^years. It assumes constant annual inflation — a simplification for planning. India’s CPI varies year to year.

Long-term CPI in India has often ranged around 4–6%, with spikes in certain categories (education, healthcare). Many planners use 6% for lifestyle expenses and 8–10% for education/medical costs.

RBI targets CPI inflation (currently 4% with a band). Higher inflation may lead to rate hikes, affecting FD and bond returns. Inflation erodes fixed-income real returns.

Enter annual expenses for clarity (e.g. ₹6,00,000/year household spend). The result is the annual amount needed after n years at your inflation assumption.

Inflation projects costs upward. Present value discounts future amounts backward. For retirement, project expenses with inflation, then discount corpus needs at expected portfolio return.

Mutual fund risk-o-meters and scheme documents discuss inflation risk. Illustrations should use reasonable assumptions; guaranteed products are rare in market-linked categories.

₹6,00,000 annual expenses today at 6% inflation for 20 years → future cost ≈ ₹19,24,281 per year.

Future cost ≈ present × (1 + inflation)^years. At 6% for 20 years, purchasing power of a fixed ₹1 lakh falls sharply while the same lifestyle costs much more. Use your own inflation assumption for goals.

Enter today’s cost, years until college and an education-inflation rate (often higher than general CPI). The inflated target feeds SIP/goal calculators. Estimates only — actual fees vary by course and college.