Inflation Calculator
See how inflation raises the future cost of the things you buy and how much of your money's real value it erodes — enter an amount, an inflation rate and the number of years.
What is an inflation calculator?
An inflation calculator shows how the rising cost of living affects money over time. Inflation is the general increase in prices, which means every dollar buys a little less each year. This free calculator takes three inputs: an amount, an annual inflation rate and a number of years. It returns two figures: the future cost of the same item — what it will cost after inflation — and the purchasing power of today's money at that future point. Together they show why a dollar saved now is worth more than a dollar earned much later. This is the quiet cost of holding cash instead of investing it.
The math applies compound growth to prices, mirroring how inflation snowballs each year. Even a modest 3% inflation roughly doubles prices every couple of decades. The display uses $ for the example, but the tool is currency-agnostic and the calculation runs entirely in your browser.
How to use
- Enter the amount you want to project, such as a price or a cash balance.
- Set the annual inflation rate you expect (a common long-run assumption is 3%).
- Enter the number of years.
- Click Calculate inflation to see the future cost and real purchasing power.
How inflation is calculated
Future cost = A × (1 + i)^t Purchasing power = A ÷ (1 + i)^t
Future cost tells you what the same basket will cost, while purchasing power tells you what today's money is worth in future dollars. The gap between them is the real value inflation takes away.
Example
With the defaults — $1,000, 3% inflation and 20 years — click Calculate inflation. The future cost is $1,806.11 (the same $1,000 of goods will cost about $1,806) and the purchasing power of today's $1,000 drops to $553.68. Your money loses roughly $446.32 of real value over that period.
Common use cases
- Plan retirement income: work out how much a fixed income will buy years from now.
- Budget for the future: estimate what a car, tuition, or a service will cost when you need it.
- Set savings goals: see how much you need to save so your money keeps its real value.
- Compare investments: know the real return after stripping out inflation.
Pro tips
- Use a realistic rate: 3% is a common long-run assumption for many economies, but rates vary by country and period.
- Inflation compounds steadily: even a small rate erodes value significantly over decades — don't ignore it.
- Look at real return: subtract expected inflation from a nominal return to judge whether savings truly grow.
- Invest to outpace it: idle cash loses buying power, so consider assets that historically beat inflation.
FAQ
What is inflation?
Inflation is the general rise in prices over time, which means each unit of currency buys less than it did before.
How does an inflation calculator work?
It applies compound growth to a price or amount: future cost = A × (1 + i)^t, and purchasing power = A ÷ (1 + i)^t, where i is the annual inflation rate and t the years.
What is the rule of 72 for inflation?
Divide 72 by the inflation rate to estimate how many years it takes for prices to double. At 3% inflation, that is about 24 years.
What is a good historical inflation rate?
Many developed economies aim for around 2% per year, but consumer inflation has often ranged from 2% to over 7% depending on the period and country.
Why does purchasing power drop over time?
Because prices rise while the amount of money stays the same, so the same sum buys fewer goods and services each year.
What is the difference between nominal and real value?
Nominal value is the actual dollar amount, while real value is that amount adjusted for inflation to reflect what it can buy.
How can I protect my savings from inflation?
Invest in assets that have historically outpaced inflation, such as stocks, real estate, or inflation-protected bonds, rather than leaving cash idle.
Is inflation calculated the same in every country?
No. Each country uses its own basket of goods and methodology, so inflation rates are not directly comparable across countries.
Is this inflation calculator free and private?
Yes. It runs entirely in your browser and nothing is uploaded anywhere.
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