Inflation CalculatorFree online financial calculator — instant results, no sign-up
What money is worth after years of inflation.
Estimates only, based on the inputs and assumptions shown. This is not financial, investment, tax, or legal advice. Prices, rates and local rules may change; crypto scenarios do not predict returns. Confirm important decisions with a qualified professional.
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How the result changes with amount
Each row below was calculated with this tool, keeping every other input at its default and changing only amount from half to one and a half times the default value. Use it to see how sensitive the answer is before you enter your own numbers.
| Amount ($) | Equivalent future cost | Future purchasing power | Cumulative inflation |
|---|---|---|---|
| 500 | $671.96 | $372.05 | 34.39% |
| 750 | $1,007.94 | $558.07 | 34.39% |
| 1,000 (default) | $1,343.92 | $744.09 | 34.39% |
| 1,250 | $1,679.90 | $930.12 | 34.39% |
| 1,500 | $2,015.87 | $1,116.14 | 34.39% |
About the Inflation Calculator
This calculator estimates the effect of compound inflation on money over a specified number of years. It calculates how much higher prices will be, how much purchasing power a fixed sum of cash loses, and the total cumulative inflation over the period. It helps savers, investors, and budgeters plan for long-term purchasing needs.
- Amount
- The starting baseline monetary sum, entered in dollars ($). Represents current savings, an annual salary, or the current price of an item.
- Average inflation
- The projected constant annual rate of inflation, expressed as a percentage (%). Typical historical benchmarks range between 2% and 4%.
- Years
- The duration of the projection in years. Accepts positive numbers reflecting short-term or multi-decade planning horizons.
Formula and method
f = (1 + rate / 100)^years Equivalent future cost = amt × f Future purchasing power = amt / f Cumulative inflation = (f − 1) × 100%
- fCompounding inflation factor over the given period
- amtInitial dollar amount
- rateAnnual average inflation rate in percent
- yearsTime elapsed in years
The tool computes an exponential inflation growth factor by compounding the annual percentage rate across the input years. It scales the initial dollar amount by this factor to find future cost, divides by the factor to determine future purchasing power, and displays the cumulative price increase as a formatted percentage.
Worked example
These are the calculator's starting values and the results it actually produces for them.
Inputs
- Amount1000 $
- Average inflation3 %
- Years10
Results
- Equivalent future cost$1,343.92
- Future purchasing power$744.09
- Cumulative inflation34.39%
How to use the Inflation Calculator
- 1Convert the annual inflation percentage to a decimal by dividing by 100 and add 1.
- 2Raise the resulting base to the power of the number of years to obtain the inflation growth factor.
- 3Multiply the original amount by the growth factor to find the equivalent future cost.
- 4Divide the original amount by the growth factor to calculate purchasing power, and subtract 1 from the factor to find cumulative inflation.
Reading your result
Equivalent future cost shows what you must spend in the future to purchase what your initial amount buys today. Future purchasing power reveals what your current cash amount will be worth in today's dollars if kept uninvested. Cumulative inflation shows the total percentage increase in price levels across the entire timeframe.
Limitations
The calculation assumes a constant annual inflation rate across all years, ignoring actual economic cycles and annual fluctuations. It also applies a single rate across the entire economy, omitting specific inflation rates for categories like healthcare, college tuition, or real estate.
Common questions
Why is cumulative inflation higher than multiplying the annual rate by the number of years?+
Inflation compounds each year on top of previous increases. For example, 3% inflation over 10 years equals 34.39% cumulatively, rather than 30%, because each year's percentage increase applies to an already enlarged price base.
What is the difference between equivalent future cost and future purchasing power?+
Equivalent future cost tells you how many future dollars you need to buy a fixed basket of goods. Future purchasing power tells you how small a basket of goods a fixed nominal amount of cash will buy in the future.
What long-term inflation rate is commonly used for financial planning?+
Many financial planners use between 2% and 3% for long-term planning, reflecting the US Federal Reserve's long-run target of 2% alongside historical multi-decade averages.
Does the calculator save my information?+
Calculations run in your browser. While signed in, inputs and results are automatically recorded in account history; saving a result creates a separate saved record.
Further reading
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Results are estimates for informational purposes and are not financial, medical or legal advice.