Inflation Calculator

See how inflation chips away at the value of your money over time. Enter an amount, an average inflation rate and a number of years, then press Calculate.

Written by TopicDrill Editorial Team·Updated June 2026

Share this calculator

Cost vs buying power over time

Future cost Buying power

How the inflation calculator works

Inflation measures how fast prices rise across the economy. As prices climb, each dollar buys a little less, so the real value of money held as cash slowly falls. This tool shows both sides of that story: what today's basket of goods will cost later, and what today's money will actually be worth later.

The future cost uses FV = PV times (1 + i) to the power of t, where i is the annual inflation rate and t is the number of years. Buying power is the mirror image, found by dividing today's amount by that same growth factor. The chart above plots both lines so the widening gap is easy to see.

A quick example

Suppose you keep $10,000 in cash and inflation averages 3% a year. After 20 years that cash still reads $10,000, but it only buys about $5,537 worth of goods in today's terms. Meanwhile the things that cost $10,000 today would cost roughly $18,061. That gap is the hidden cost of holding cash for a long time.

Things to keep in mind

Inflation is an average, and your personal rate depends on what you buy. For official figures, the U.S. Bureau of Labor Statistics publishes the Consumer Price Index. To see how investing can outpace inflation, try our compound interest calculator.

Frequently asked questions

How does inflation affect my money?

Inflation raises the general level of prices, so a fixed amount of cash buys less each year. If prices rise 3% a year, something that costs $100 today costs $103 next year, which means the same $100 now buys slightly less.

What inflation rate should I use?

A long run average of around 2% to 3% a year is common for the United States, in line with the Federal Reserve target and historical Consumer Price Index data. For specific planning you can use the actual published rate for a period or a rate that matches your own spending.

What is the difference between future cost and buying power?

Future cost is what today's basket of goods will cost later, found with FV = PV times (1 + i) to the power of t. Buying power is what today's fixed amount of money will be worth later, found by dividing by the same factor. One rises while the other falls.

How can I protect savings from inflation?

Holding cash alone tends to lose value over time. Many people invest in assets that have historically grown faster than inflation, such as diversified stocks, or use inflation linked bonds. Always weigh the added risk against your own goals.

Related guides

View all →

Money Management ETF vs Mutual Fund: Which Is Better for Beginners?

ETF vs Mutual Fund: Which Is Better for Beginners? Explore costs, tax implications, and trading flexibility for informed investment decisions.

MAJun 11, 2026Read More →

Business Finance How Much Will $1,000 Invested Today Be Worth in 10 Years?

Invest $1,000 today and the answer to "what's it worth in 10 years?" ranges from about $1,040 in a basic savings account to roughly $2,594 at the stock market's long-run average. Here's the math behind every scenario — plus how inflation, fees and taxes change the real number.

MAJun 9, 2026Read More →

Business Finance How Much Do You Need to Retire Comfortably? (2026 Guide)

There's no single magic number for retirement — but there are proven formulas that get you close. Using the 4% rule, most people need roughly 25 times their annual spending invested. Here's how to find your personal target, factoring in Social Security, healthcare, inflation and lifestyle.