01
Prices Rise
When the prices of goods and services increase, the same amount of money may purchase less than it previously did.
INFLATION CALCULATOR
See How Inflation Can Change the Value of Your Money
Estimate how inflation can affect the purchasing power of a dollar amount over time and understand what the same amount of money may need to cover future expenses.
01
Current Value
02
Inflation Rate
03
Future Purchasing Power
INFLATION IMPACT
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LIVE CALCULATION
Value
Time
Purchasing power changes over time
Inflation
INFLATION CALCULATOR
Estimate the future cost of today's money
Enter an amount, inflation rate and time period to see how inflation could change its future value. Use your own assumptions to compare different long-term scenarios.
CALCULATION INPUTS
Enter your inflation assumptions
$
Amount you want to evaluate
%
Your assumed annual inflation rate
years
How far into the future
Please enter a valid amount, inflation rate and number of years.
Inflation varies over time. This calculator uses the annual rate you enter and should be treated as an estimate rather than a forecast.
INFLATION PROJECTION
Future Cost
—
Enter your numbers to calculate
Current Amount
—
Inflation Rate
—
Purchasing Power
—
Inflation Impact
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PURCHASING POWER REMAINING
—
Lost purchasing power
Remaining value
Important:
This calculator uses a constant inflation assumption for illustration.
Actual inflation can vary significantly from year to year, and your
personal spending costs may change differently from a broad inflation
measure.
UNDERSTANDING INFLATION
What is inflation and why does it matter?
Inflation is the general increase in prices for goods and services over time. When prices rise, each dollar generally buys fewer goods and services than it did before.
For personal financial planning, inflation matters because the amount needed for a future purchase may be higher than the amount required today.
02
Purchasing Power Changes
Purchasing power describes how much a given amount of money can actually buy at a particular point in time.
03
Time Matters
The longer the period considered, the greater the potential effect of a sustained inflation rate on future prices.
HOW TO USE THE CALCULATOR
Estimate inflation's impact in four simple steps
Start with a current dollar amount and use a realistic inflation assumption for the period you want to examine.
01
Enter a Current Amount
Enter the amount you want to evaluate, such as a current purchase price, savings target or planned expense.
02
Choose an Inflation Rate
Enter the annual inflation assumption you want to use for your calculation.
03
Set the Time Period
Enter the number of years between today and the future point you want to evaluate.
04
Review the Result
Compare the future cost with today's amount and review the estimated purchasing power remaining.
INFLATION FORMULA
How the inflation calculation works
A basic inflation calculation estimates the future amount needed to match the purchasing power of a current amount.
Future Cost = Current Cost × (1 + i)t
This formula assumes the same annual inflation rate throughout
the selected period.
Current Cost is the amount today, i represents the annual inflation rate as a decimal, and t represents the number of years.
C
Current amount
i
Annual inflation rate
t
Number of years
F
Estimated future cost
INFLATION OVER TIME
Today
5Y
10Y
15Y
20Y
PURCHASING POWER
Why the same amount may buy less later
Imagine that a product costs $100 today. If prices rise steadily over time, the amount required to buy the same product in the future could be higher.
The opposite way to look at this is purchasing power. A fixed amount of money may represent a smaller share of future spending as prices increase.
Current Cost
What the item or goal costs today
Future Cost
What the same purchasing power may require later
Purchasing Power
How much today's money may be worth in real terms
EVERYDAY FINANCIAL PLANNING
Where inflation can affect your financial decisions
Inflation is not limited to one category of spending. It can affect long-term goals, household budgets and the amount needed to maintain purchasing power.
Housing Costs
Housing-related expenses can change over time, making future housing budgets different from today's costs.
Food and Groceries
Changes in food prices can influence household budgets and the amount needed for everyday expenses.
Healthcare
Future healthcare spending can differ from current costs, which is particularly relevant when planning for later life.
Education
Long-term education goals may require more money in the future if costs increase over time.
Retirement
Retirement planning needs to consider how future living expenses may differ from what they cost today.
Investment Goals
Long-term investment goals often need to account for purchasing power rather than focusing only on a future dollar balance.
INFLATION AND FINANCIAL PLANNING
Plan for the future, not just today's prices
A financial goal stated only in today's dollars may underestimate the amount required in the future. Inflation assumptions can help put long-term savings targets into perspective.
For example, a retirement plan may need to consider future housing, healthcare, food and transportation costs rather than assuming today's prices will remain unchanged.
01
Define the goal
Identify the future expense or financial target.
02
Estimate future costs
Apply a reasonable inflation assumption.
03
Review your savings plan
Consider whether your current strategy fits the goal.
04
Revisit assumptions
Update your estimates as economic conditions change.
COMMON MISTAKES
Avoid common mistakes when planning around inflation
Assuming One Rate Forever
Actual inflation changes from year to year. A constant rate is useful for illustration but should not be treated as a guaranteed forecast.
Ignoring Personal Spending
Your personal expenses may rise faster or slower than a broad inflation measure depending on what you buy.
Focusing Only on Dollars
A larger future dollar balance does not necessarily mean greater purchasing power after inflation.
Forgetting Long-Term Goals
Retirement, education and other long-term goals can be particularly sensitive to changes in future costs.
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INFLATION CALCULATOR FAQ
Questions about inflation and purchasing power
An inflation calculator estimates how the purchasing power or future cost of a dollar amount can change when a specified inflation rate is applied over time.
The calculator compounds the inflation rate over the number of years you enter. It then estimates the future amount needed to match the purchasing power of today's amount.
Generally, when prices rise, the purchasing power of a fixed amount of money declines because that amount can buy fewer goods and services.
Yes. You can enter your own annual inflation assumption to explore different scenarios. This is useful for comparing conservative and higher-inflation planning cases.
No. The calculator is a mathematical estimate based on the rate and timeframe you enter. Actual inflation can change substantially over time.
Retirement planning often spans several decades. Inflation can affect future living costs, healthcare expenses and the amount needed to maintain a desired lifestyle.
CHECK YOUR NUMBERS
Calculate Now
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See how inflation could change your future costs
Enter a current amount, inflation assumption and timeframe to explore the potential impact on purchasing power.