Inflation Calculator

Our inflation calculator helps you understand how inflation affects the purchasing power of your money over time and what future value you'll need to maintain the same buying power.

What is Inflation?

Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. As inflation increases, each dollar buys fewer goods and services.

The Formula

Future Value = Current Amount × (1 + Inflation Rate)^Years
Purchasing Power Loss = Current Amount - (Current Amount / (1 + Inflation Rate)^Years)

Historical Context

The average inflation rate in the United States over the past century has been approximately 3% per year, though it varies significantly by decade.

Example

$10,000 today at 3% inflation for 10 years
Future Value Needed: $13,439
Purchasing Power Loss: $2,558