Inflation Calculator
Inflation compounds, so a steady 3% a year is not 30% over a decade — it is about 34%. Enter an amount, an annual inflation rate, and a number of years to see both what that basket will cost later and what the same dollars will be worth in today’s money.
- Accurate
- Real-time
- Easy to use
- 100% free
Future cost
$18,061.11
Equivalent value today
$5,536.76
Details
Updates as you typeThe sum of money whose future cost you want to project.
Long-run US CPI inflation has averaged roughly 3% a year.
Summary
Severe — 40% to 60%Future cost
$18,061.11
Today's amount
$10,000.00
- Value retained$5,536.7655%
- Value lost to inflation$4,463.2445%
- Purchasing power lost
- 44.6%
- Equivalent value today
- $5,536.76
- Purchasing power lost in dollars
- $4,463.24
- Cumulative inflation
- 80.6%
- Extra cost versus today
- $8,061.11
- Average extra cost per year
- $403.06
How this is calculated
- Amount today
- $10,000.00
- Annual inflation rate
- 3.00%
- Years
- 20
- Price multiplier
- 1.8061
- Future cost = amount × multiplier
- $18,061.11
- Equivalent value = amount ÷ multiplier
- $5,536.76
- Purchasing power kept
- 55.4%
- Purchasing power lost
- 44.6%
Years
Compare scenarios
See how one change moves the result
- CurrentYour inputs as they stand$18,061.11Current
- Amount today$ 12,500$22,576.39
- Annual inflation rate% 3.8$21,083.71
- Number of yearsyr 25$20,937.78
For informational purposes only. This is not financial advice — confirm major decisions with a licensed advisor.
Frequently asked questions
How is the future cost of an amount calculated?
Future cost = amount × (1 + rate / 100) ^ years. Inflation compounds, so each year applies to the already-inflated price rather than to the original amount. At 3% for 20 years the multiplier is about 1.806.
What does purchasing power lost actually mean?
It is the share of value a fixed sum of money gives up if prices rise while it sits still. Dividing the amount by the price multiplier gives what those future dollars buy in today’s money; the gap between the two is the purchasing power lost.
Why does 3% inflation halve my money in about 23 years?
Because of compounding, a rate of r percent roughly halves purchasing power after 70 / r years — the rule of 70. At 3% that is about 23 years, at 5% about 14 years, and at 7% only a decade.
Does this calculator account for interest or investment returns?
No. It shows the effect of inflation alone on a fixed sum. To see whether savings outpace rising prices, compare this result with a compound interest projection, or use a return figure already adjusted for inflation.