1 Nov 2026 · Money · 4 min read
Why ₹1 lakh today is worth only about ₹56,000 in 10 years
Inflation explained in plain words, with the rule of 72 and what it means for the money sitting in your savings account.
By Kaushik Tank
Your parents probably remember when a samosa cost one rupee. Today it's twenty or more. The samosa didn't get twenty times better. Your rupee got weaker. That's inflation, and it is quietly eating the money sitting in your savings account right now.
Inflation in one line
Inflation means prices go up over time, so the same money buys less every year.
If inflation is 6% a year, something that costs ₹100 today will cost about ₹106 next year. Small number. But it keeps stacking.
What ₹1 lakh is really worth later
At 6% inflation, here's what today's ₹1 lakh can buy in the future:
| After | Buying power of ₹1 lakh |
|---|---|
| 5 years | about ₹74,700 |
| 10 years | about ₹55,800 |
| 20 years | about ₹31,200 |
Read the middle row again. In ten years, your ₹1 lakh behaves like ₹56,000 does today. You didn't spend a rupee, and you still lost almost half.
Flip it around and the same idea shows up in prices. Something that costs ₹1 lakh today could cost about ₹1.79 lakh in 10 years and about ₹3.2 lakh in 20 years.
The rule of 72 shortcut
Want to know how fast prices double? Divide 72 by the inflation rate.
At 6% inflation, 72 divided by 6 is 12. So prices roughly double every 12 years. Your monthly expenses at 30 could be double by 42 and four times by 54.
The same shortcut works for growth. Money growing at 12% doubles in about 6 years.
Why your savings account is not enough
If your savings account pays around 3% and inflation runs around 6%, your money is losing about 3% of its value every year. It looks safe because the number never goes down. But what that number can buy goes down every single year.
That's why people talk about "beating inflation". The goal isn't to get rich quick. It's to make sure your money at least keeps its value.
What you can actually do
- Keep only what you need in savings. Your emergency fund and near-term spending, not your whole net worth.
- Invest the long-term money. Money you won't touch for 5+ years can go into options with a better chance of beating inflation, like equity mutual funds through a SIP.
- Plan in future rupees. When you set a goal, like a ₹20 lakh car in 10 years, adjust it for inflation first.
Check what any amount will be worth in the future with the free inflation calculator. It takes ten seconds and it will change how you look at your bank balance.
Money that just sits isn't safe. It's slowly shrinking.
This is for education only, not investment advice.