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Inflation Calculator

Enter an amount and an inflation rate to see what it will cost in the future — and what today's money buys years from now.

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Future cost
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Today's buying power
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How inflation erodes purchasing power

Inflation compounds just like interest, but in reverse — it compounds the cost upward rather than the value of savings. Each year, prices rise by the inflation rate applied to the new higher price, not just the original.

Worked example. At 3% annual inflation, something that costs $100 today will cost roughly $134 in 10 years. Flip the question: $100 in 10 years is worth only about $74 in today’s purchasing power.

The formula

f = (1 + inflationRate)^years. Future cost = amount × f. Today’s buying power of a future amount = amount ÷ f.

Why it matters for savings

A savings account earning 2% in a 3% inflation environment has a negative real return. Matching or beating inflation is the minimum goal for any long-term saving strategy. Use this alongside the compound interest calculator to see whether your projected returns outpace inflation.

Frequently asked questions

What does 'buying power' mean in this calculator?

Buying power is the present-day equivalent of a future amount. If $100 in 10 years at 3% inflation has a buying power of about $74, that means $100 today does the work of $74 in future money — inflation quietly shrinks what each dollar buys.

What inflation rate should I use?

For general planning, 2–3% is a common assumption based on historical averages in developed economies. For specific goods like healthcare or education that tend to inflate faster, use a higher rate. For recent periods, check your country's official CPI data.