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Inflation Calculator
See how rising prices shrink the buying power of your money over time — and how much more things will cost in the future.
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How the Inflation Calculator works
Inflation is the slow rise in the general price level, and its effect is easy to underestimate because it works quietly. A dollar can buy a little less each year, and across decades the difference becomes large. This calculator makes it visible: enter an amount, a number of years and an annual inflation rate, and it shows what things costing that amount today will cost then — and what your current dollars will actually buy.
The two numbers are mirror images. If prices rise 3% a year for 20 years, something that costs $1,000 today costs about $1,806. Turning that around, $1,000 of cash would buy only about $554 worth of today's goods. The table lets you see 5, 10, 20 and 30-year horizons side by side, and the "prices double in about" line applies the Rule of 72 precisely.
This matters for any long-term plan. Retirement goals expressed in today's dollars need to be larger in the future, and money kept in low-yield accounts can lose purchasing power over time even though the number on the statement is stable. Our Retirement Savings Calculator and Compound Interest Calculator show growth in nominal dollars, so pairing them with this tool gives a more realistic picture.
Inflation is not all bad news: it also erodes the real value of fixed-rate debt, and wages tend to rise over time. But for savers, the lesson is clear — your investments and savings need to grow faster than prices to move you forward. Our guide on inflation and your savings covers the practical options in plain English.
Frequently asked questions
How does the inflation calculator work?
It compounds your chosen inflation rate over the number of years. Future cost = today's amount × (1 + rate)^years. Purchasing power is the inverse: today's amount ÷ (1 + rate)^years. The calculator uses a constant average rate, while real inflation varies each year.
What inflation rate should I use?
Long-run U.S. inflation is often discussed as being around 2% to 3% a year, which is the range many central banks target, but individual years can be higher or lower. Check the latest Consumer Price Index release from the Bureau of Labor Statistics for the current reading and test a range of rates.
Why does inflation matter for savings?
Because money that earns less than inflation loses buying power even though the balance looks the same or grows slightly. Cash in a savings account earning 1% while prices rise 3% is losing about 2% of its purchasing power a year.
Does this predict the price of specific things?
No. Prices of individual items — housing, healthcare, tuition, electronics — can rise much faster or even fall. The calculator shows what a general average rate does to money over time, not a forecast for any one product.