🎈 Inflation Calculator
See how inflation changes the value of money: what today’s prices will cost in future, what a past amount is worth now, and how much buying power is lost.
Quick answer: Future cost = amount × (1 + inflation)^years. At 3% inflation, something that costs $100 today will cost $134.39 in 10 years, and $100 then will buy only what $74.41 buys today.
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Inflation Calculator inputs
Result
Cost of $100.00 in 10 years
$134.39
at 3% average inflation a year
| Same goods in the future cost | $134.39 |
| What $100.00 will buy (in today’s money) | $74.41 |
- Cumulative inflation
- 34.39%
- Purchasing power lost
- 25.59%
- Prices double in
- 23.4 years
Year by year
| Year | Equivalent cost | Purchasing power |
|---|---|---|
| 1 | $103.00 | $97.09 |
| 2 | $106.09 | $94.26 |
| 3 | $109.27 | $91.51 |
| 4 | $112.55 | $88.85 |
| 5 | $115.93 | $86.26 |
| 6 | $119.41 | $83.75 |
| 7 | $122.99 | $81.31 |
| 8 | $126.68 | $78.94 |
| 9 | $130.48 | $76.64 |
| 10 | $134.39 | $74.41 |
How inflation is calculated
Inflation compounds just like interest: each year's price rise builds on the previous year's higher prices. A constant average rate gives a simple growth factor.
Factor = (1 + i)n · Future cost = Amount × Factor · Purchasing power = Amount ÷ Factor
i is the yearly inflation rate as a decimal and n the number of years. To bring a past amount forward to today, use the same formula with the number of years ago.
Worked example
With 3% inflation for 10 years the factor is 1.0310 = 1.3439. A basket of goods costing $100 today will cost $134.39. Turned around, $100 received in ten years will only buy what $74.41 buys today – a 25.6% loss of purchasing power.
What $1,000 becomes after 20 years
| Inflation | Future cost | Buying power left |
|---|---|---|
| 2% | $1,485.95 | $672.97 |
| 3% | $1,806.11 | $553.68 |
| 5% | $2,653.30 | $376.89 |
Why it matters
- Savings: cash earning less than inflation loses real value every year.
- Retirement: an income that feels comfortable today may cover far less in 25 years.
- Salary: a raise below the inflation rate is a pay cut in real terms.
- Real return: subtract inflation from your investment return to see how fast your wealth really grows.
Choosing a rate
For long-term planning, many people use 2–3% as a baseline and test a higher rate such as 4–5% to see how sensitive their plans are. For short periods, the latest annual consumer price index change published by your country's statistics office is a good guide. Remember that some costs, such as healthcare and education, have historically risen faster than general inflation.
Estimates for educational purposes, not financial advice.
Frequently asked questions
How do you calculate the effect of inflation?
Multiply the amount by (1 + inflation rate) raised to the number of years. To find what a future amount is worth in today’s money, divide by the same factor instead.
What inflation rate should I use?
Many central banks, including the US Federal Reserve, target about 2% a year, and long-run US inflation has averaged roughly 3%. Use a higher figure to stress-test long-term plans.
Does this use historical CPI data?
No. It applies a constant average rate you choose. Actual inflation varies year to year, so for exact historical comparisons use official consumer price index (CPI) figures.
How long does it take for prices to double?
Divide 72 by the inflation rate (the rule of 72). At 3% prices double in about 24 years; at 6% in about 12 years. The calculator shows the exact figure.