Planning Tool
Inflation Calculator
See what something that costs a given amount today will cost in future, how much purchasing power your savings lose over time, and what your investment return is after inflation.
Inflation Settings
Cost in 10 yrs
PKR 2.16 L
what PKR 1.00 L buys today
Purchasing power
PKR 46,319
of PKR 1.00 L held as cash
Real return
3.70%
12% nominal โ 8% inflation
Cost of today's purchase over time
Y1
Cost: PKR 1.08 L
Cash worth: PKR 92,593
Y2
Cost: PKR 1.17 L
Cash worth: PKR 85,734
Y3
Cost: PKR 1.26 L
Cash worth: PKR 79,383
Y4
Cost: PKR 1.36 L
Cash worth: PKR 73,503
Y5
Cost: PKR 1.47 L
Cash worth: PKR 68,058
Y6
Cost: PKR 1.59 L
Cash worth: PKR 63,017
Y7
Cost: PKR 1.71 L
Cash worth: PKR 58,349
Y8
Cost: PKR 1.85 L
Cash worth: PKR 54,027
Y9
Cost: PKR 2.00 L
Cash worth: PKR 50,025
Y10
Cost: PKR 2.16 L
Cash worth: PKR 46,319
| Year | Future cost | Purchasing power of cash |
|---|---|---|
| Year 1 | 108,000 | 92,593 |
| Year 2 | 116,640 | 85,734 |
| Year 3 | 125,971 | 79,383 |
| Year 4 | 136,049 | 73,503 |
| Year 5 | 146,933 | 68,058 |
| Year 6 | 158,687 | 63,017 |
| Year 7 | 171,382 | 58,349 |
| Year 8 | 185,093 | 54,027 |
| Year 9 | 199,900 | 50,025 |
| Year 10 | 215,892 | 46,319 |
โ Uses the single average inflation rate you enter. Pakistan's actual inflation has varied widely year to year, and your own basket of expenses may inflate faster or slower than the headline figure โ try several rates.
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How the inflation calculator works
Future cost of today's expenses
Inflation is the rise in prices over time. If prices rise by an average of i% a year, something that costs P today will cost P ร (1 + i)โฟ in n years. The calculator applies your assumed rate year by year so you can see the whole path, not just the end point.
Future cost = Today's cost ร (1 + inflation)^years
Purchasing power of money
The mirror image is purchasing power: a fixed amount of cash buys less each year. Divide by the same growth factor to see what an amount received in the future is worth in today's rupees. This is why cash left idle loses real value when inflation is high.
Purchasing power = Amount รท (1 + inflation)^years
Real return
A return only builds wealth if it beats inflation. The real return is the nominal return adjusted for inflation using the Fisher relation: (1 + nominal) รท (1 + inflation) โ 1. Enter an expected nominal return to see whether your money is growing in real terms or shrinking.
Frequently Asked Questions
Multiply today's price by (1 + inflation rate) raised to the number of years. For example, at 8% inflation an item costing Rs 100,000 today costs about Rs 146,900 in five years.
There is no single correct number. Inflation in Pakistan has moved a lot from year to year. For long-term planning many people test a range of rates โ including a conservative higher one โ rather than relying on the latest monthly figure. Check the latest official CPI data from the Pakistan Bureau of Statistics or the State Bank of Pakistan.
Nominal return is what your investment earns before adjusting for price rises. Real return subtracts the effect of inflation, showing the actual increase in what your money can buy.
Because general prices rise, each rupee buys fewer goods and services. The calculator's purchasing-power result shows how much of today's buying power remains after the years and inflation rate you choose.
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