Inflation Calculator. Purchasing Power Over Time
What will your money buy later?
See what today’s money could buy in the future, how much the same goods could cost, and whether your investments keep up with rising prices.
- Free, no sign-up
- Runs in your browser
- Shareable results
- Educational only
Enter your numbers.
The amount of money you have, or the cost of something, today.
The average yearly rise in prices. Test a few rates.
Whole years, from 1 to 100.
What the money earns if it is invested. Enter 0 for cash that earns nothing.
These are hypothetical assumptions for learning, not forecasts or advice.
Result
Prices up, purchasing power down.
View the year-by-year table
What the numbers mean.
Prices compound too.
Inflation raises prices on top of earlier rises, just like interest. At 3% a year, prices roughly double in 24 years.
Cash loses purchasing power.
Money that earns less than inflation buys less each year, even though the number in the account stays the same.
Real return is what counts.
An investment only grows your buying power if its return beats inflation. The calculator shows both the future-money and today’s-money values.
About this inflation calculator.
An inflation calculator shows how rising prices change what your money can buy. Enter an amount today, a yearly inflation rate, the number of years and, if you like, the return your money earns. The calculator shows what the same goods could cost in the future, the purchasing power of the cash, and how much an investment is worth in today’s money.
Inflation is the quiet cost of holding money: a balance that never changes buys less each year. Read inflation and investing and the glossary entry on inflation for the background. To see an investment’s growth after inflation, use the real return calculator, and to plan retirement in today’s money, the FIRE calculator.
How the inflation calculator works in practice.
Using the default inputs: amount today $10,000; yearly inflation 3%; years 20 years; yearly return on your money 4%.
Purchasing power of the cash: $5,537
Purchasing power lost: 44.63%
Years for cash to lose half its power: 23.4
Invested value, future money: $21,911
Invested value, today’s money: $12,132
Real return per year: 0.97%
With the “High inflation (6%)” preset, what $10,000 of goods costs in 20 years: $32,071. With the “Low inflation (2%)” preset, what $10,000 of goods costs in 20 years: $14,859. Change one input at a time to see which assumption matters most.
How to choose your inputs for the inflation calculator.
Amount today. The amount of money you have, or the cost of something, today.
Yearly inflation. The average yearly rise in prices. Test a few rates.
Years. Whole years, from 1 to 100.
Yearly return on your money. What the money earns if it is invested. Enter 0 for cash that earns nothing.
How the inflation calculator works.
The calculator grows prices at your inflation rate and shrinks the purchasing power of cash by the same rate. It also grows your money at the return you enter, then converts that value back into today’s money.
Purchasing power = amount ÷ (1 + inflation)^years
Invested value = amount × (1 + return)^years
Real return = (1 + return) ÷ (1 + inflation) − 1
Years to lose half = ln(2) ÷ ln(1 + inflation)
The model uses one steady inflation rate and one steady return. Real inflation varies, and your own costs may rise faster or slower than the average. Taxes and fees are not modeled.
Limits of this inflation calculator.
The calculator assumes one steady inflation rate and one steady return every year. Real inflation changes over time and differs between goods, so your own costs may rise faster or slower than the average. It ignores taxes and fees, so use an after-fee return for investments. Treat the result as an illustration, not a forecast.
Common questions about the inflation calculator.
What is inflation?
Inflation is the general rise in prices over time. It reduces how much a given amount of money can buy.
How do I calculate the effect of inflation?
Multiply today’s price by (1 + inflation rate) for each year. The calculator does this for you and also shows the purchasing power of cash.
What inflation rate should I use?
Use a long-run estimate for your country and test higher and lower values. Many central banks aim near 2%, but actual rates have varied widely.
How does inflation affect savings?
If your savings earn less than inflation, their purchasing power falls even though the balance grows. Compare the real return line in the results.
Is the result a forecast?
No. It assumes a steady inflation rate and return. Real inflation and returns change from year to year.
More calculators.
Educational illustration only, not a forecast or personal investment recommendation. Results depend entirely on the assumptions entered.
Further learning: Glossary · Investor.gov: Financial tools and calculators · Research methodology · Financial disclaimer