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Inflation Calculator

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Inflation erodes purchasing power over time — the same dollar amount buys less in the future. This calculator projects forward using an assumed average annual inflation rate you choose, since future inflation isn't known in advance.

Inflation Calculator

Live
Equivalent future amount
$18,061.11
Purchasing power lost
44.6%
Today's amount
$10,000.00
Uses a single assumed average rate — real inflation varies year to year.

The formula

Future equivalent = Amount × (1 + inflation rate)ʸᵉᵃʳˢ
Example

$10,000 today, at an assumed 3% average annual inflation, over 20 years: you'd need about $18,061.11 in 20 years to buy what $10,000 buys today — meaning today's $10,000 will have lost roughly 44.6% of its purchasing power by then.

Step-by-step guide

  1. Enter today's amount.
  2. Enter an assumed average annual inflation rate. A commonly used long-run planning assumption is around 2–3%, though actual inflation varies significantly year to year.
  3. Enter the number of years and read the equivalent future amount and purchasing power lost.

Common mistakes

Treating a single assumed rate as a precise prediction — actual inflation fluctuates year to year and can differ meaningfully from any long-run average you assume.
Forgetting to compare inflation against your investment returns — money sitting in cash loses purchasing power to inflation, while investments aim to outpace it.

Frequently asked questions

What inflation rate should I use?

There's no single correct answer for future years — many long-term financial plans use a rate somewhere around 2–3% based on historical averages, but check current inflation data for recent actual figures if you want a more grounded starting point.

Does this use real historical inflation data?

No — this projects forward using a single rate you choose, for simplicity. Real inflation (measured by indexes like the CPI) varies from year to year rather than compounding at one constant rate.

How does this relate to my salary or investments?

If your income or investment returns grow slower than inflation, your real (inflation-adjusted) purchasing power shrinks even if the nominal number goes up. Compare your raise or return rate against the inflation rate here to see the real change.

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