Inflation Calculator
See how inflation changes purchasing power over time, forwards or backwards.
What the Inflation Calculator does
Inflation erodes what money buys. At 3% a year, prices double roughly every 24 years — meaning a salary or savings balance that stays flat loses half its real value over that time.
Formula
Future cost = Amount × (1 + inflation)ʸᵉᵃʳˢPast value = Amount ÷ (1 + inflation)ʸᵉᵃʳˢ
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Amount | selected currency | Yes | Accepts more than 0. |
| Average annual inflation rate | % | Yes | — |
| Number of years | years | Yes | Accepts more than 0, up to 100. |
| Direction | one of 2 options | Yes | — |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Direction and Currency.
- Enter Amount, Average annual inflation rate and Number of years.
- Select Calculate.
Worked example
What will $50,000 of annual spending cost in 20 years at 3% inflation?
- Amount
- 50000
- Rate
- 3
- Years
- 20
- Direction
- Future
50,000 × 1.03²⁰ = $90,306 — you need 80% more income for the same lifestyle.
Frequently asked questions
What inflation rate should I assume?
Most developed economies target around 2–3%. Long-run historical averages run a little higher. Use 3% for conservative planning.
How do I beat inflation?
You need a return above the inflation rate. Cash under 3% loses real value; the real return is roughly nominal return minus inflation.