Inflation Calculator
See how inflation erodes buying power over time — what a sum today will cost in the future, and what future money is worth in today’s terms.
How inflation changes the value of money
Inflation means the same goods cost more over time, so money gradually loses buying power. This calculator shows both sides of that: what something priced at your amount today would cost after a number of years, and what a future sum is worth in today’s money.
It is useful for long-term planning — retirement, saving goals, or simply understanding why prices creep up year after year.
The formula
Future cost = amount × (1 + rate)^years. Today’s buying power of a future amount = amount ÷ (1 + rate)^years, where rate is the annual inflation rate.
Worked example
| Item | Value |
|---|---|
| Amount today | $1,000 |
| Annual inflation | 3% |
| Years | 10 |
| Future cost of the same goods | $1,344 |
| Buying power of $1,000 in 10 years | $744 today |
Frequently asked questions
How is future cost calculated?
It compounds your amount by the inflation rate each year: amount × (1 + rate) raised to the number of years.
What inflation rate should I use?
Real inflation varies year to year. A common long-run assumption is around 2–3% per year, but you can enter any rate to model different scenarios.
Does this predict actual future prices?
No. It is a projection based on a constant rate you choose, not a forecast of real inflation, which changes over time.