Inflation Calculator
Future cost and lost purchasing power.
- Cumulative inflation
- 34.39%
- Purchasing power left
- 74.41%
How this calculator works
Prices rise by the inflation rate each year, compounding over time. The same math in reverse shows how much a fixed sum loses in buying power.
Formula
Future cost = Amount × (1 + i)ⁿ; Purchasing power = Amount ÷ (1 + i)ⁿ
Example
At 3% inflation, something that costs $100 today will cost about $134.39 in 10 years.
When to use it
- Set retirement income goals in future dollars
- Judge whether a raise beat inflation
- Plan long-term costs like tuition
Frequently asked questions
What inflation rate should I use?
Many central banks target about 2% a year, and long-run averages in the US have been close to 3%. Use a higher rate to test a cautious scenario.
How does inflation affect my savings?
If your savings earn less than the inflation rate, their buying power falls each year even though the balance grows.
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