How to use this inflation calculator
- Amount today — the dollar amount you want to project, such as a price, salary or savings balance.
- Number of years — how far into the future you want to look.
- Annual inflation rate — the average yearly rate prices are expected to rise. The default of 3 percent reflects the long-run US average.
The results update instantly as you type. You will see the future cost of that amount, the future value of today's money in real terms (its purchasing power), and the total inflation over the whole period as a percentage.
How inflation affects your money
Inflation is the steady rise in prices over time, and it cuts both ways. Looking forward, the same basket of goods costs more each year: thefuture cost takes your amount and grows it by compounding the inflation rate, so $1,000 today at 3 percent becomes about $1,344 in ten years. Looking at it the other way, a fixed amount of cash buys less as prices climb. The purchasing power figure divides your amount by that same growth factor to show what today's dollars will really be worth later — roughly $744 of today's buying power after ten years at 3 percent. Thetotal inflation percentage ties the two together: it is the cumulative price increase across the entire period, compounded year on year.
Why this matters for planning
- Retirement: a comfortable income today may fall short decades from now once inflation is factored in.
- Savings: money sitting in a low-interest account quietly loses value if it grows slower than prices.
- Big purchases: projecting future cost helps you budget for tuition, a home or a car you plan to buy years out.
- Raises: a pay rise only makes you better off if it beats the inflation rate over the same span.
Frequently asked questions
How is future cost calculated?
Future cost is the amount today multiplied by (1 plus the annual inflation rate) raised to the number of years. It shows what something costing that amount now would cost later if prices rise at the rate you enter.
What is purchasing power?
Purchasing power is what your money will actually buy in the future. The calculator divides your amount by the inflation growth factor to show how much real value the same dollars hold after inflation.
What inflation rate should I use?
The long-run average for the US is roughly 3 percent per year, which is the default. You can enter a higher or lower rate to match a specific period or your own assumptions.
Is my data uploaded?
No — everything is calculated in your browser and nothing is sent anywhere.
This tool is for general information only and is not financial advice.
Related: Compound Interest Calculator, Simple Interest Calculator, Loan & Mortgage Calculator.