Inflation calculator
See how inflation erodes purchasing power over time.
Inflation calculator shows how inflation affects money over time in both directions: what an amount today will be worth in future purchasing power, and how much you'd need in the future to match today's purchasing power, given an assumed annual inflation rate.
How to use
- Enter an amount, an assumed annual inflation rate, and a number of years.
- Click "Calculate" to see both directions: what today's money will be worth, and what you'd need in the future to match it.
Common use scenarios
- Understanding how much a fixed amount of savings will really be worth in the future.
- Estimating how much more something will cost years from now.
- Adjusting a long-term financial goal to account for expected inflation.
- Understanding why a fixed-income amount feels less sufficient over time.
✓Content & verification reviewed: 2026-08-25
How we verify Inflation calculator
How to confirm you're reading the right one of the two calculated directions.
Two related but distinct figures are shown
"Future purchasing power" answers "what will today's amount be worth (in today's terms) in the future?" — it goes down. "Required future amount" answers "how much money will I need in the future to buy what this amount buys today?" — it goes up. Make sure you're reading the one that answers your actual question.
Assumes a constant inflation rate for the whole period
The calculation applies one fixed annual inflation rate compounded over the full number of years — real-world inflation fluctuates year to year, so longer projections carry more uncertainty than the single smooth number suggests.
This is about purchasing power, not nominal account balance
This tool doesn't calculate investment growth — it's purely about how the same amount of money buys less over time due to rising prices; pair it with the Compound interest calculator if you want to also model investment growth alongside inflation.
Before you rely on the result
- You're reading the figure (future purchasing power vs. required future amount) that answers your actual question.
- The inflation rate you've entered is a reasonable assumption for your planning horizon, not just an arbitrary guess.
- You understand this is a constant-rate approximation, and real inflation will vary year to year.
- If you also want to model investment growth, you're pairing this with the Compound interest calculator separately.
Who this is for
- Anyone wanting to understand how much a fixed amount of savings will really be worth in the future.
- People estimating how much more something will cost years from now.
- Anyone adjusting a long-term financial goal to account for expected inflation.
- Savers trying to understand why a fixed-income amount feels less sufficient over time.
Real-world examples
Understanding future savings value
Someone with a fixed amount saved calculates its future purchasing power in 20 years, realizing it will buy meaningfully less than it does today, prompting them to consider investment growth to offset inflation.
Adjusting a long-term goal for inflation
Someone setting a savings target for a goal 15 years away calculates the required future amount to match today's cost, adjusting their goal upward to account for expected price increases.
Explaining a fixed pension's declining feel
Someone on a fixed pension calculates how their fixed monthly amount's purchasing power will erode over a 20-year retirement, helping them understand why budgeting gets tighter over time even with a stable dollar amount.
Limitations
- Assumes a constant inflation rate for the whole period, which real inflation rarely is.
Frequently asked questions
What's the difference between the two results shown?
"Future purchasing power" shows what today's amount is worth in future terms (a smaller number, showing erosion); "required future amount" shows how much money you'd need in the future to have the same buying power as today's amount (a larger number).
Does this calculate investment returns too?
No — this is purely about inflation's effect on purchasing power; if you also want to model investment growth on top of that, use the Compound interest calculator alongside this one.
Is a single inflation rate realistic for a long projection?
It's a simplification — real inflation varies from year to year, so the longer the time period, the more a single constant-rate assumption diverges from what will actually happen; treat long-term results as rough estimates.
What inflation rate should I use?
There's no universally correct answer — a common approach is to use a long-term historical average for your currency/region, or a current central bank target rate, adjusted based on your own judgment about future conditions.
🔒 Runs in your browser — nothing is uploaded. Results are for reference only; see the disclaimer. Last updated: 2026-08-25
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