The economy is growing, but Inflation is also growing. So what will be the value of Rs 1 Crore after 25 years?
The value, you are getting today, will not be the same in the future. Due to inflation, the value will decrease. The amount in the numbers will be the same, but purchasing power will decrease.
What Is Inflation?
Inflation is a decrease in the purchasing power of money. It’s an increase in the price of goods and services over a specific period of time. The most common way to calculate Inflation is the Consumer Price Index (CPI).
Example – If a house price is 50 Lakh today, it may be 70 Lakh or 1 Crore in the future. Also, if you have 50 Lakh today, you can’t purchase the house for 50 Lakh in the future due to the price increase.
Inflation Rate In India:
- 2023: 5.49%
- 2022: 6.7%
- 2021: 5.13%
- 2020: 6.62%
- 2019: 3.73%
2024 Inflation rate may be 5-6%.
Value Of Rs 1 Crore After 25 Years?
- Value : ₹1 Crore
- Inflation: 6% p.a (assume)
- Time: 25 Years
Results:
- Value After Inflation (after 25 years: ₹23,29,986
- Total Value Drop Due to Inflation: ₹76,70,014
If The Inflation Rate Is 5%?
- Value After Inflation (after 25 years: ₹29,53,028
- Total Value Drop Due to Inflation: ₹70,46,972
Value Of Rs 1 Crore After 20 Years?
- Value : ₹1 Crore
- Inflation: 6% p.a (assume)
- Time: 20 Years
Results:
- Value After Inflation (after 20 years: ₹31,18,047
- Total Value Drop Due to Inflation: ₹68,81,953
Value Of Rs 1 Crore After 15 Years?
- Value : ₹1 Crore
- Inflation: 6% p.a (assume)
- Time: 15 Years
After 15 Years:
- Value After Inflation (after 15 years: ₹41,72,651
- Total Value Drop Due to Inflation: ₹58,27,349
After 10 Years:
- Value After Inflation (after 10 years: ₹55,83,948
- Total Value Drop Due to Inflation: ₹44,16,052
After 5 Years:
- Value After Inflation (after 5 years: ₹74,72,582
- Total Value Drop Due to Inflation: ₹25,27,418
It is a big decrease in price over time, due to inflation. Here, we are assuming 6% per annum inflation rate, but inflation rate may be low or high, you can check with different rate, amount and time.
| Year | Current Value | Value After Inflation | Value Drop Due to Inflation |
|---|---|---|---|
| 1 | ₹1,00,00,000 | ₹94,33,962 | ₹5,66,038 |
| 2 | ₹1,00,00,000 | ₹88,99,964 | ₹11,00,036 |
| 3 | ₹1,00,00,000 | ₹83,96,193 | ₹16,03,807 |
| 4 | ₹1,00,00,000 | ₹79,20,937 | ₹20,79,063 |
| 5 | ₹1,00,00,000 | ₹74,72,582 | ₹25,27,418 |
| 6 | ₹1,00,00,000 | ₹70,49,605 | ₹29,50,395 |
| 7 | ₹1,00,00,000 | ₹66,50,571 | ₹33,49,429 |
| 8 | ₹1,00,00,000 | ₹62,74,124 | ₹37,25,876 |
| 9 | ₹1,00,00,000 | ₹59,18,985 | ₹40,81,015 |
| 10 | ₹1,00,00,000 | ₹55,83,948 | ₹44,16,052 |
| 11 | ₹1,00,00,000 | ₹52,67,875 | ₹47,32,125 |
| 12 | ₹1,00,00,000 | ₹49,69,694 | ₹50,30,306 |
| 13 | ₹1,00,00,000 | ₹46,88,390 | ₹53,11,610 |
| 14 | ₹1,00,00,000 | ₹44,23,010 | ₹55,76,990 |
| 15 | ₹1,00,00,000 | ₹41,72,651 | ₹58,27,349 |
| 16 | ₹1,00,00,000 | ₹39,36,463 | ₹60,63,537 |
| 17 | ₹1,00,00,000 | ₹37,13,644 | ₹62,86,356 |
| 18 | ₹1,00,00,000 | ₹35,03,438 | ₹64,96,562 |
| 19 | ₹1,00,00,000 | ₹33,05,130 | ₹66,94,870 |
| 20 | ₹1,00,00,000 | ₹31,18,047 | ₹68,81,953 |
| 21 | ₹1,00,00,000 | ₹29,41,554 | ₹70,58,446 |
| 22 | ₹1,00,00,000 | ₹27,75,051 | ₹72,24,949 |
| 23 | ₹1,00,00,000 | ₹26,17,973 | ₹73,82,027 |
| 24 | ₹1,00,00,000 | ₹24,69,785 | ₹75,30,215 |
| 25 | ₹1,00,00,000 | ₹23,29,986 | ₹76,70,014 |
How To Defeat Inflation
Only way to defeat inflation is to invest in higher returns investment options. Mutual Funds, Stocks, PPF, or other higher returns investment can do your help to beat inflation.
