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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

Future Cost
$180.61
What $100 of goods will cost in 20 years
Buying Power
$55.37
What $100 will be worth in 20 years
Purchasing Power Lost$44.63 (44.6%)
Cumulative Inflation80.6%
Price Multiplier1.81x

Inflation Over Time

YearBuying PowerFuture Cost
5$86.26$115.93
10$74.41$134.39
15$64.19$155.80
20$55.37$180.61

How Inflation Affects Your Money

Inflation is the rate at which the general price level of goods and services rises over time, reducing the purchasing power of money.

Future Price = Current Price × (1 + Inflation Rate)Years

At 3% annual inflation, prices roughly double every 24 years. $100 today would buy only $55.37 worth of goods in 20 years, meaning you need $180.61 to buy what $100 buys today.

To protect against inflation, consider investments that historically outpace inflation: stocks (7% real return), real estate, Treasury Inflation-Protected Securities (TIPS), and I Bonds.

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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