Inflation Calculator: Do you have Rs 1 crore in your bank account and wonder how much it will be worth in a few years?
As we all know, the value of Rs 1 crore was vastly different 20 years ago, and it will change significantly 20 years from now. But why does this happen? This occurs due to the continuous rise in the prices of goods and services, which steadily reduces the purchasing power of money.
So, when planning for retirement, always remember that while Rs 1 crore might seem like a substantial amount today, it won’t hold the same value in the future. Aim to build a corpus that accounts for inflation-adjusted returns in your chosen savings or investment schemes to secure your post-retirement years.
In this article, we will explore various scenarios to understand how inflation gradually erodes the value of your money over time. Specifically, we will calculate what Rs 1 crore might be worth in 20, 30, and 50 years if the current inflation rate of approximately 6% continues during these periods.
Also read: Will Rs 7.5 lakh income be tax-free for senior citizens under Old Tax Regime in upcoming Union Budget? Here’s what finance ministry says
Value of Rs 1 crore after 20 years
After 20 years, the value of Rs 1 crore today will not be that much. Due to inflation, it will reduce to just Rs 31.18 lakh.
Value of Rs 1 crore after 30 years
After 30 years, the value of money will decrease even more. At that time, the purchasing power of Rs 1 crore will reduce to only Rs 17.41 lakh.
Value of Rs 1 crore after 50 years
After 50 years, the impact of inflation will be more profound. At that time, today’s Rs 1 crore will be worth only Rs 5.43 lakh. This fall will be the result of the compounding effect of inflation.
Conclusion
It is obvious how inflation erodes the purchasing power of money over time. Accumulating Rs 1 crore may be a good target, but for long-term financial goals, it is important to plan with inflation in mind.
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