Inflation Calculator
See what an amount will cost in the future — and how much purchasing power today's dollars lose over time.
Inputs
Result
Visual breakdown
Formula
Future cost = amount · (1 + rate)^years. Purchasing power = amount ÷ (1 + rate)^years. A 3% rate compounded over 20 years roughly doubles prices.
Example
$1,000 at 3% inflation for 20 years → future cost ≈ $1,806. The same $1,000 today buys ≈ $554 of value 20 years from now.
Related: Retirement · Investment return · Savings growth
How to use
- Use historical inflation (e.g. 2–3%) as a baseline, but try a higher rate to stress-test plans.
- Compare retirement expense estimates in today's dollars vs future dollars.
- Pair with the Investment Return calculator to see real returns.
When it's useful
- Sizing retirement income needs decades out.
- Comparing fixed-dollar pensions or annuities over time.
- Setting savings targets that keep up with rising costs.
Common examples
Frequently asked
What inflation rate should I use?
Long-run US inflation has averaged ~2–3%. Use a number you're comfortable defending — and try higher rates as a stress test.
Is this CPI?
It's a simple compound model. CPI shifts year to year; use the average over your horizon for planning.
Does it work for any currency?
Yes — use any local inflation rate. The math is currency-agnostic.
How does inflation affect investing?
It eats into nominal returns. Real return ≈ (1 + nominal) ÷ (1 + inflation) − 1.
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More money & work →Educational only — not financial advice.