Inflation Calculator
See how inflation changes the value of money over time, what a sum will cost in future dollars and how much its purchasing power erodes.
Future cost
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Show the math
Prices compound at the inflation rate over time:
future cost = amount × (1 + rate)years
Future cost is what something priced at today’s amount would cost later. Buying power is what today’s amount would be worth in future terms, the same amount divided by that growth factor. Long-run inflation has often averaged around 2–3% a year, but it varies.
What this does
An inflation calculator shows how inflation changes the value of money over time, what a sum will cost in future dollars and how much its purchasing power erodes over a period.
How to use it
- Enter the amount of money.
- Enter the annual inflation rate.
- Enter the number of years.
- Read the future cost and the eroded purchasing power.
How it works
The amount is compounded at the yearly inflation rate over the period. Future cost is what something priced at today’s amount would cost later; purchasing power is what today’s amount would be worth in future terms.
Understanding your result
When prices rise, each unit of currency buys less, which is why long-term savings usually need to earn more than inflation to grow in real terms. Long-run U.S. inflation has averaged around 2–3% a year.
Example
At 3% inflation, $1,000 today has the purchasing power of about $744 in 10 years, and what costs $1,000 now would cost roughly $1,344 then.
Sources & methodology
- U.S. Bureau of Labor Statistics, Consumer Price Index, Official measure of U.S. inflation
- U.S. Bureau of Labor Statistics, CPI Inflation Calculator, Historical purchasing-power changes
Last updated .
Frequently asked questions
How does this calculate inflation?
It compounds your amount at the yearly inflation rate over the period. "Future cost" is what something priced at today’s amount would cost later; "purchasing power" is what today’s amount would be worth in future terms.
What inflation rate should I use?
Long-run inflation in many developed economies has averaged around 2–3% a year, but it varies. Use a recent figure or try a range to see the effect.
Why does money lose value over time?
When prices rise, each unit of currency buys less than before. That is why long-term savings usually need to earn more than inflation to grow in real terms.
Do you keep my inputs?
No, everything is calculated locally in your browser.
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