The Calculator Helper

Inflation Calculator

See how inflation changes buying power and prices over the years.

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%/yr
Equivalent cost in future
$0
Future buying power of today’s money
$0
Total inflation
—
Buying power lost
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Today’s amount
$0

An illustration at a steady rate you choose — real inflation varies. This is general information, not financial advice.

Two sides of rising prices

Inflation can be read two ways. Looking forward, the same basket of goods costs more each year. Looking inward, a fixed sum of money buys less and less. Both are the same effect, compounded over time.

future cost = amount × (1 + rate)^years

Dividing instead of multiplying gives the future buying power of today’s money in today’s terms — a stark reminder of why cash left idle slowly erodes.

Worked example

At 3% inflation, goods costing $1,000 today would cost about $1,344 in ten years. Put the other way, today’s $1,000 would buy only about $744 worth in today’s terms by then — roughly a quarter of its purchasing power gone.

Why it matters

Inflation is the quiet tax on savings and fixed incomes. It is also why long-term plans use “real” returns — growth above inflation — rather than headline numbers. Even a modest rate compounds into a large gap over decades.

Worth remembering

  • Small rates compound. 3% a year roughly doubles prices in about 24 years.
  • Beat it to grow. Returns below inflation are losses in real terms.
  • Rates vary. Use a figure that fits your time and place.

This is general information, not financial advice.

Frequently asked questions

What does inflation do to money?
It raises prices over time, so each unit of currency buys a little less. The same goods cost more later, and money kept under the mattress quietly loses purchasing power.
How is the future cost worked out?
By compounding the inflation rate: future cost = amount × (1 + rate)^years. The same maths in reverse gives the future buying power of today’s money.
What rate should I use?
A long-run average of 2–3% is common in many economies, but it varies by country and period. Use a figure that suits your situation, and remember real inflation moves around.
Is this a forecast?
No. It is a what-if based on a steady rate you choose. Actual inflation fluctuates, so treat the result as an illustration rather than a prediction.