Economy Tools

Inflation Calculator

See how inflation quietly erodes the real value of your money. Calculate what today's amount will be worth in the future, and visualize purchasing power declining over time.

Purchasing PowerFuture CostReal ValueYear-by-Year Chart

Configure

Inflation parameters

$
3.0%
0.0%20.0%
10 yrs
1 yr50 yrs
Future Cost$1,343.92equivalent in 10 years
Purchasing Power Loss25.6%reduction in real value
Real Value Retained74.4%of today's purchasing power

Visual

Purchasing power erosion

Retained (74.4%)Lost to inflation (25.6%)

How the inflation calculator works

01

Enter your amount

Input a dollar amount in today's value that you want to project into the future.

02

Set inflation rate

Use the historical average (~3%), recent CPI figures, or a custom rate to model different scenarios.

03

See purchasing power loss

View the future cost, the decline in real value, and a year-by-year purchasing power chart.

Frequently asked questions

What is inflation?

Inflation is the gradual increase in the general price level of goods and services over time, which reduces the purchasing power of money. Measured by the Consumer Price Index (CPI), the US averages around 3% per year historically.

Why does inflation matter for savings?

Cash savings in low-yield accounts lose real value every year to inflation. $10,000 today is worth roughly $7,400 in today's dollars after 10 years at 3% inflation — a 26% purchasing power loss.

What inflation rate should I use?

The Federal Reserve targets 2%. The 20-year historical US average is approximately 2.5–3%. For conservative planning, use 3–4%. For healthcare or education costs, which inflate faster, use 5–7%.

Disclaimer: This calculator uses a constant inflation rate assumption. Actual inflation varies year to year and differs by geography and category of goods.

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