Inflation Calculator
Calculate how inflation affects the purchasing power of your money over time. See how much prices rise and what your money will be worth in the future.
Results
Inflation Over Time
How to Use This Tool
- Enter the current dollar amount you want to project (e.g. today's cost of an item or your income).
- Enter the expected annual inflation rate as a percentage.
- Enter the number of years to project forward.
- Read "Future Cost" to see what today's amount will cost in that many years.
- Read "Buying Power" to see what today's dollar amount will actually be worth (in today's purchasing terms) after inflation.
- Check the year-by-year table to see how buying power and future cost change at each milestone year.
Formula & How It Works
Future Cost (Future Price)
Future Price = Current Amount × (1 + Inflation Rate)^YearsProjects how much more a good or service will cost after compounding at the given inflation rate for the given number of years.
Buying Power
Buying Power = Current Amount ÷ (1 + Inflation Rate)^YearsShows what today's amount will be worth in real (inflation-adjusted) terms after that many years of rising prices.
Purchasing Power Lost
Power Lost = Current Amount − Buying PowerThe dollar amount of value erosion caused by inflation over the period.
Cumulative Inflation & Price Multiplier
Cumulative Inflation % = (Future Price ÷ Current Amount − 1) × 100Shows the total percentage price increase over the full period, and the price multiplier shows it as a simple ×factor.
Practical Examples & Common Use Cases
Example 1: $100 at 3% inflation over 20 years
Future Price = $100 × (1.03)^20 ≈ $180.61. Buying Power = $100 ÷ (1.03)^20 ≈ $55.37. In 20 years, $100 will only buy what $55.37 buys today — a loss of $44.63 in purchasing power (44.6%).
Example 2: $50,000 salary at 4% inflation over 10 years
Future Price = $50,000 × (1.04)^10 ≈ $74,012. If your salary stays flat at $50,000, its buying power falls to about $33,778 in 10 years — you would need a raise to roughly $74,012 just to maintain today's standard of living.
Example 3: Rule of 72 sanity check
At 3% inflation, 72 ÷ 3 = 24 years for prices to roughly double. The calculator confirms this: $100 projected 24 years at 3% grows to about $203, consistent with the Rule of 72 estimate.
Frequently Asked Questions
Central banks typically target 2% annual inflation. Historically, the US has averaged about 3% per year. Periods of high inflation (5%+) have occurred but are less common.
If your savings earn less than inflation, your money loses purchasing power. For example, earning 1% on savings while inflation is 3% means you lose 2% in real value each year.
Historically, stocks (7-10% average return), real estate, and commodities have outpaced inflation. TIPS (Treasury Inflation-Protected Securities) and I Bonds are designed to match inflation.
Divide 72 by the inflation rate to estimate how many years until prices double. At 3% inflation, prices double in about 24 years. At 6%, they double in about 12 years.
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