Inflation Calculator
Inflation is the rate at which prices rise and money loses buying power. Enter an amount, an average yearly rate and a number of years to see the future cost and what today's money will be worth.
Enter your figures below. Results update as you type.
Cost in 10 years$1,343.92to match what $1,000.00 buys today
- Future buying power of the amount
- $744.09
- Cumulative inflation
- 34.39%
- Buying power lost
- 25.59%
- Cost of the same goods
- Buying power of the amount
How the Inflation calculation works
Future cost = amount x (1 + inflation rate)^years
At 3% inflation, prices double in about 24 years. The calculator uses the average rate you supply rather than historical index data, so you can test your own assumption.
Frequently asked questions
What inflation rate should I use?
The US Federal Reserve targets 2% a year. The long-run US average since 1913 is a little over 3%.
How do I calculate the inflation rate?
Take the price index at the end of the period, subtract the index at the start, divide by the starting index and multiply by 100. If the Consumer Price Index rises from 300 to 309 over a year, inflation was 3%.
How does inflation affect my savings?
It reduces what your money can buy. After 10 years of 3% inflation, $10,000 buys what about $7,441 buys today. Savings need to earn at least the inflation rate just to keep their value.
What is the Consumer Price Index?
The CPI tracks the average price of a fixed basket of goods and services that households buy, such as food, housing, transport and medical care. In the US it is published monthly by the Bureau of Labor Statistics and is the most widely used measure of inflation.
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