Inflation Calculator

Reviewed

Enter details
$
%
years
ResultUpdates as you type
Future cost$1,343.92
Purchasing power$744.09
Total inflation34.4%
Rising cost over time
  • Price
$0$500$1K$1.5K$2K0246810

See how inflation changes the future cost and purchasing power of money over time. Free and instant.

Inflation erodes the value of money over time. Enter an amount, an expected annual inflation rate and a number of years to see the future cost of the same goods and the shrinking purchasing power of that money.

An inflation calculator shows how rising prices reshape the value of money. Enter an amount, an expected annual inflation rate and a time horizon, and it returns the future cost of the same basket of goods plus the shrinking purchasing power of that money in today’s terms.

Because inflation compounds, small yearly rates add up. At 3% a year, prices roughly double in about 24 years while the buying power of a fixed sum steadily falls. Seeing both sides of that coin makes it easier to plan savings, salaries and long-term goals against a moving target.

How to use

  1. Enter the amount of money.
  2. Enter the expected annual inflation rate.
  3. Enter the number of years to project.

Formula

Inflation compounds each year, raising prices and lowering purchasing power.

Future costFuture = Amount × (1 + rate / 100)^years
Purchasing powerPower = Amount / (1 + rate / 100)^years

Worked examples

$1,000 at 3% for 10 years

At 3% inflation, goods costing $1,000 today will cost about $1,344 in ten years, and $1,000 will buy only about $744 of today's goods.

Frequently asked questions

What is a typical inflation rate?

Many central banks target around 2% per year. Actual inflation varies — use a rate that reflects your region and time horizon.

What does purchasing power mean?

It is how much your money can actually buy. At 3% inflation, $1,000 today has the buying power of about $744 in ten years.

How can I protect against inflation?

Investments that historically outpace inflation — such as diversified stocks or inflation-linked bonds — help preserve purchasing power, though all carry risk.

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