# INR Inflation Calculator for the year 2020

Enter the INR amount for which you want to calculate inflation from the year 2020:

RESULT: ₹1 in 2020 is worth ₹1.14 today.

You might be interested in calculating the value of ₹1 for the year 2021.

# ₹1 in 2020 is worth ₹1.14 today.

## The value of ₹1 from 2020 to 2022

₹1 in 2020 has the purchasing power of about ₹1.14 today, a ₹0.14 increase in 2 years. Between 2020 and today, the rupee experienced an average annual inflation rate of 6.54%, resulting in a cumulative price increase of 13.51%.

According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 2020.

In 2020, the inflation rate was 6.6234%. Inflation is now 6.08% higher than it was last year. If this figure holds true, ₹1 today will be worth ₹7.08 next year in purchasing power.

## Inflation from 2020 to 2022

Summary Value
Cumulative price change (from 2020 to today) 13.51%
Average inflation rate (from 2020 to today) 6.54%
Converted amount ₹1.14
Price Difference ₹0.14
CPI in 2020 8147.79
CPI in 2022 9248.3472
Inflation in 2020 6.6234%
Inflation in 2022 6.08%
₹1 in 2020 ₹1.14 in 2022

## Buying power of ₹1 in 2020

If you had ₹1 in your hand in 2020, its adjusted value for inflation today would be ₹1.14. Put another way, you would need ₹1.14 to beat the rising inflation. When ₹1 becomes equivalent to ₹1.14 over time, the "real value" of a single Indian rupee decreases. In other words, a rupee will pay for fewer items at the store.

This effect explains how inflation gradually erodes the value of a rupee. By calculating the value in 2020 rupees, it's evident how ₹1 loses its worth over 2 years.

## Rupee inflation for ₹1 from 2020 to 2022

The below tabular column shows the effect of inflation on ₹1 in the year 2020 to the year 2020.

Year Rupee Value Inflation Rate
2020 1 6.6234%
2021 1.05 5.13%
2022 1.12 6.08%

## Conversion of 2020 rupees to today's price

Based on the 13.51% change in prices, the following 2020 amounts are shown in today's rupees:

Initial value Today value
₹1 rupee in 2020 ₹1.14 rupees today
₹5 rupees in 2020 ₹5.68 rupees today
₹10 rupees in 2020 ₹11.35 rupees today
₹50 rupees in 2020 ₹56.75 rupees today
₹100 rupees in 2020 ₹113.51 rupees today
₹500 rupees in 2020 ₹567.54 rupees today
₹1,000 rupees in 2020 ₹1135.07 rupees today
₹5,000 rupees in 2020 ₹5675.37 rupees today
₹10,000 rupees in 2020 ₹11350.74 rupees today
₹50,000 rupees in 2020 ₹56753.72 rupees today
₹100,000 rupees in 2020 ₹113507.43 rupees today
₹500,000 rupees in 2020 ₹567537.16 rupees today
₹1,000,000 rupees in 2020 ₹1135074.32 rupees today

## How to calculate the inflated value of ₹1 in 2020

To calculate the change in value between 2020 and today, we use the following inflation rate formula:

CPI Today / CPI in 2020 x Rupee Value in 2020 = Current Rupee Value

By plugging the values into the formula above, we get:

9248.3472/ 8147.79 x ₹1 = ₹1.14

To buy the same product that you could buy for ₹1 in 2020, you would need ₹1.14 in 2022.

### To calculate the cumulative or total inflation rate in the past 2 years between 2020 and 2022, we use the following formula:

CPI in 2022 - CPI in 2020 / CPI in 2020 x 100 = Cumulative Inflation Rate

By inserting the values to this equation, we get:

( 9248.3472 - 8147.79 / 8147.79) x 100 = 13.51%

### Alternate method to calculate today's value of money after inflation - Using compound interest formula

Given that money changes over time due to inflation, which acts as compound interest, we can use the following formula:

FV = PV (1+i/100)^n

where,

• FV = Future value
• PV = Present value
• i: Average interest rate (inflation)
• n: Number of times the interest is compounded (i.e. # of years)

The future value in this case represents the amount obtained after applying the inflation rate to our initial value. In other words, it indicates how much ₹1 is worth today. We have 2 years between 2022 and 2020. The average inflation rate was 6.5398667526263%.

Plugging in the values into the formula, we get:

1 (1+ % 6.54/ 100 ) ^ 2 = ₹1.14