Inflation Calculator
What will your money be worth in the future? This inflation calculator estimates how rising prices affect future costs and purchasing power over a selected period, using a constant annual rate such as the long-run CPI average.
Quick answer
Future cost applies compound inflation to current amount.
What this tells you
- •Future cost applies compound inflation to current amount.
- •Purchasing power estimates what the same amount buys in future-value terms.
- •Increase amount shows nominal price change from inflation.
How to Use
- 1Enter a current amount.
- 2Enter expected annual inflation rate.
- 3Enter number of years.
- 4Calculate to compare present and future value.
How It Works
Formula
Future Cost = Amount x (1 + rate)^years
Purchasing Power = Amount / (1 + rate)^yearsInflation is modeled as annual compounding growth in prices.
Calculation note: values are processed in the order shown above, using the current input units.
Worked Examples
$1,000 over 10 years at 3%
Common mistakes
- Entering rate as decimal instead of percent
- Using unrealistic long-term fixed inflation assumptions
- Confusing nominal and real value
Limitations
This estimate uses one constant inflation rate over the full period. The rate you enter is an assumption, typically based on the Consumer Price Index (CPI) published by the U.S. Bureau of Labor Statistics. Actual inflation changes year to year and can differ significantly from long-term assumptions.