Inflation Adjusted Future Value Calculator

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Calculating inflation adjusted future value is very simple, but people think it is difficult especially, those who are not have much numerical skills. Here is a simple formula to help you to calculate inflation adjusted investment returns.

Financial planners frequently uses this formula to calculate the inflation adjusted future expense as well as to identify the possible inflation adjusted returns on investments. Comparing these results, they can easily identify required investments for their clients.

Here s how calculate inflation adjusted future value

Suppose your present monthly expense is Rs, 5000 (change this to your currency) and the current inflation rate in your country is 7%, you now want to know what would be your monthly expense after 10 or 15 years. Here is the formula:

=Present expense amount * (1+inflation%)^number of years

For example:

=5000*(1+7%)^15 = 13,795 /-

5000 = Your present monthly expense
7% = Expected inflation inflation rate
15 = Number of years
13795 = is the expense of yours per month after 15 years.

The same formula can also be used to identify the maturity value of any investments. All you need to do is to change the inflation percentage with the interest rates, In the above scenario, the 7% is the interest rate of your investments.

Let me know if you need any further clarifications