Inflation Calculator
Calculate how inflation erodes your purchasing power over time.
Calculate Inflation Impact
Inflation Impact
To maintain purchasing power, your money must grow at least equal to inflation rate.
How inflation works
Inflation reduces the value of money over time. What costs NPR 100 today might cost NPR 180 in 10 years at 6% inflation.
Future Cost = Present Cost × (1 + inflation rate)^yearsPurchasing Power:
Real Value = Nominal Value / (1 + inflation rate)^yearsExample: NPR 1 lakh today with 6% inflation for 10 years
Future value = 1,00,000 ÷ (1.06)^10 = NPR 55,839
Loss = NPR 44,161 (44.2% less purchasing power)
FAQs
What is inflation in Nepal?
Nepal's inflation rate typically ranges 4-8% annually. Check Nepal Rastra Bank for current rates.
How does inflation affect savings?
If your savings earn less than inflation rate, you're losing purchasing power. A 4% return with 6% inflation means 2% real loss.
How can I protect against inflation?
Invest in assets that beat inflation: stocks, real estate, gold. Fixed deposits barely keep up with inflation.
Why does inflation happen?
Multiple reasons: increased money supply, high demand, supply shortages, increased production costs, or currency devaluation.
Is some inflation good?
Yes! Moderate inflation (2-4%) is healthy. It encourages spending and investment. High inflation or deflation are problems.