Simla Investment：Inflation Value Calculator — India

Let’s have an example to understand how one can use inflation value calculator.Gain from a House Site

Say you bought a Hyderabad house site in 2010 for 28 Lakhs and sold it in 2024 for 90 Lakhs. Simply put, you gained Rs. 62 Lakhs.Inflation and True Gain

Every country has inflation (price increases and rupee value loss), so we must compensate for your 2010 investment.

This calculator calculates inflation value on Rs. 28 Lakhs invested in 2010 as RsSimla Investment. 55 LakhsPune Investment. Thus, (90 Lakhs – 28 Lakhs – 55 Lakhs) = Rs. 7 Lakhs is the true gain.Alternative Investment & Comparison

If you deposited the same Rs. 28 Lakhs in a bank fixed deposit (FD) in 2010, and withdrew it in 2024 (after 14 years at 8.4% interest, use Compound Interest Calculator to get the interest), you would have gotten Rs. 58 Lakhs, the real gain after inflation would be just Rs. 3 Lakhs (Rs. 58 Lakhs – Rs. 55 Lakhs)

In comparison, the “real gain” after inflation from the house plot have fetched Rs. 4 Lakhs more than a standard FD investment.Summary

To put it simply, the gains that take inflation into account would help you figure out what the real return on an investment is.

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