How to use
Enter an amount, the expected annual inflation rate and the number of years. You’ll see two things: what something that costs this amount today will cost in the future, and what the same amount of money will be worth in today’s dollars.
Formulas
- Future cost = amount × (1 + inflation)^years.
- Purchasing power = amount ÷ (1 + inflation)^years.
- Purchasing power lost = 1 − 1 ÷ (1 + inflation)^years.
Example
At 3% inflation, something that costs $1,000 today will cost $1,343.92 in 10 years. And $1,000 kept in cash will buy only what $744.09 buys today — a 25.59% loss of purchasing power.
FAQ
What inflation rate should I use? The Federal Reserve targets 2% over the long run; historical CPI averages have been higher. Treat any rate as an assumption — actual inflation varies from year to year.
How do I compare this with my savings? If your savings earn less than inflation, their real value shrinks. Model growth with the compound interest calculator, or check an investment’s return with the ROI calculator.
Why does my inflation feel different? CPI tracks a broad basket of goods and services; your personal rate depends on what you actually buy.
The calculation assumes a constant inflation rate and is for reference only.