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How to Use the Inflation Calculator
Enter the amount you want to project, the expected annual inflation rate (3% is the default, near the long-run average), and the number of years, then press Calculate Inflation Impact. You will see what that amount will cost in the future, what it will be worth in today's money, how much purchasing power is lost, and a year-by-year table.
The insight the table makes obvious: small rate differences explode over time. The Rule of 72 gives a quick check — divide 72 by the inflation rate to see how fast prices double: about 24 years at 3%, but only about 14 years at 5%. That is why even a 1–2% gap between your investment return and inflation matters so much over decades.
A reality check: this calculator assumes one steady inflation rate, but real inflation jumps around — and it says nothing about investment returns. Money invested in assets that grow faster than inflation keeps its value; cash does not. Treat the projection as a planning guide, not a forecast.
To see the other side — how to grow money faster than inflation — try our Compound Interest Calculator, and for long-term planning with inflation in mind, our Retirement Calculator.
Frequently Asked Questions
What is inflation?
Inflation is the general increase in prices over time, which means the same amount of money buys less than it used to. It is usually measured with a consumer price index (CPI) that tracks the cost of a typical basket of goods and services.
How is future cost calculated?
Future cost = amount × (1 + rate)^years, and buying power = amount ÷ (1 + rate)^years. At 3% inflation for 20 years, $100 of goods costs about $180.61 in the future, while $100 held as cash is worth only about $55.37 in today's purchasing power.
What inflation rate should I use?
The default 3% is close to the long-run US average of about 3% a year; most central banks target around 2%. Try a range — 2%, 3% and 5% — to see how sensitive your result is, since the rate is the biggest unknown in any long projection.
What is buying power?
Buying power (purchasing power) is what today's amount will be worth in today's money after inflation has eroded it. If $100 today has $55.37 of buying power in 20 years at 3% inflation, you have lost $44.63 of real value by holding cash.
Does this calculator use real CPI data?
No — it projects with a single steady rate that you enter, so it is a planning estimate, not a historical CPI lookup. Real inflation varies year to year and differs between countries and products, so long projections carry more uncertainty than short ones.
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