Inflation Calculator
Calculate the future cost and lost buying power of money over time at a given inflation rate. Free and private.
Independently verified for accuracy
Calculator by Toolsloft ↗- Future cost
- 1343.92
- Future buying power
- 744.09
See how inflation changes the value of money over time. Enter an amount, an annual inflation rate, and a number of years to get both the future cost of that amount and how much its buying power will shrink. Handy for retirement and long-term savings planning.
How this is calculated
Inflation is compounded annually. The future cost multiplies the amount by (1 plus the inflation rate) raised to the number of years, and the future buying power divides the amount by the same factor. This mirrors how a fixed sum loses purchasing power as prices rise.
How to use
- Enter the amount of money.
- Enter the average annual inflation rate.
- Enter the number of years.
- Read the future cost and the future buying power.
Examples
- $1,000 at 3% for 10 years:
Costs $1,343.92; worth $744.09 - $50,000 at 2.5% for 20 years:
Costs $81,930.82; worth $30,513.55
FAQ
- What is the difference between future cost and buying power?
- Future cost is how much you will need later to buy what the amount buys today. Buying power is how much today's amount will be worth later, once prices have risen. They move in opposite directions.
- What inflation rate should I use?
- A long-run average of 2 to 3 percent is common for planning in the US, but you can enter any rate to match your own assumptions or a specific period.