Inflation Calculator
See what inflation does to a sum of money. Enter an amount, an average inflation rate, and a number of years to see both the future cost and the future buying power.
Purchasing power over time
🛡️ Find inflation-beating savings options
Check it outTwo sides of inflation
Inflation pushes prices up and buying power down. Something costing $1,000 today would cost more in the future at a positive inflation rate — that's the 'future cost.' Flip it around and $1,000 left under the mattress buys less later — that's the 'buying power.' It's why cash needs to earn at least the inflation rate just to hold its value.
How it’s calculated
Future cost = amount × (1 + rate)^years. Buying power = amount ÷ (1 + rate)^years.
Results update as you type and are estimates, not professional advice — verify important decisions with a qualified professional.
Worked example
At 3% inflation, $1,000 buys what about $554 buys in 20 years; the same goods would cost ~$1,806.
Common mistakes
- Assuming a single average rate holds every year.
- Confusing future cost with future buying power.
Where it is used
- Seeing how inflation erodes savings.
- Comparing a future price to today's dollars.
Frequently asked questions
What inflation rate should I use?
Long-run averages are often around 2–3%, but it varies. Use a rate that matches your time horizon and view.
Why does my savings need to beat inflation?
If your return is below inflation, your money loses real value even as the balance grows.
Is this exact?
No — it assumes a constant average rate. Real inflation fluctuates year to year.
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