Inflation Calculator
Adjust any dollar amount for inflation over a number of years to see its future cost and shrinking buying power.
Inflation Calculator
Estimate how inflation changes the value of money over time.
In 20 years, $1,000 will cost about
$0
Estimate only. Assumes a constant annual inflation rate compounded yearly; actual inflation varies.
Example
Suppose you have $1,000 today and inflation runs at 3% per year for 20 years. The cumulative factor is 1.0320 ≈ 1.806, so that same basket of goods will cost about $1,806.11 in 20 years. Viewed the other way, $1,000 kept under the mattress will have the buying power of only about $553.68 (1,000 ÷ 1.806) in today's money.
How it works
Enter an amount, an annual inflation rate, and a time span. The tool compounds the rate to show what that amount will cost later and how much purchasing power it loses.
Good to know
This Inflation Calculator takes a dollar amount, an annual inflation rate, and a number of years, then compounds the rate to show two related figures: the future cost (how many dollars you'll need later to buy what your money buys today) and the buying power (how little that same amount will be worth in tomorrow's money). It runs entirely in your browser, so it's handy for anyone sizing up a long-term savings goal, a future purchase, a retirement income target, or a salary that needs to keep pace with rising prices.
Reach for it whenever a number is far enough in the future that today's prices won't apply. The two modes answer different questions: use Future cost when you want to know what something will actually cost down the road, and use Buying power when you want to know what a fixed sum of cash will really be worth if it just sits idle. Switching between them flips the same math, since one multiplies by the cumulative factor and the other divides by it.
To read the result, focus on three numbers. The cumulative factor (for example 1.81x at 3% over 20 years) is the multiplier that does all the work; total inflation is that factor expressed as a percentage gain; and the value change shows the dollar gap between today and the future. The bar chart and the year-by-year table let you see how the gap widens over time rather than at a single endpoint.
One caveat worth keeping in mind: the tool assumes a single constant rate compounded once per year, but real inflation jumps around and varies by category, so treat the output as a planning estimate, not a forecast. A practical tip is to run the same inputs at a couple of rates (say 2%, 3%, and 4%) to bracket a range instead of trusting one exact figure.
Frequently asked questions
What is the difference between future cost and buying power?
Future cost shows how many dollars you will need later to buy what your amount buys today (amount x (1+rate)^years). Buying power shows how little today's dollars will be worth in the future (amount / (1+rate)^years). They are two sides of the same calculation.
What inflation rate should I use?
Long-run inflation in many developed economies has averaged roughly 2-3% per year, and central banks often target around 2%. Use 3% for a general estimate, or enter the rate that matches your country or a specific period. Actual inflation varies year to year.
Is my data uploaded anywhere?
No — this calculator runs entirely in your browser; nothing is uploaded.
Is this financial advice?
No. These are educational estimates — consult a qualified financial professional before making decisions.
People also ask
How do you calculate the future value of money with inflation?
Multiply the amount by (1 + annual rate) raised to the number of years. For example, $1,000 at 3% for 20 years is 1,000 x 1.03^20, which is about $1,806.
How much will $1,000 be worth in 20 years with inflation?
At a constant 3% annual rate, $1,000 left as idle cash would have the buying power of roughly $554 in today's money after 20 years, because you divide $1,000 by the cumulative factor of about 1.81.
What does cumulative inflation mean?
Cumulative inflation is the total compounded price increase over a whole period, not a single year. It is found by chaining each year's rate together, so several years of moderate inflation can add up to a much larger total than the annual figure suggests.
Does a higher salary keep up with inflation?
A raise keeps up with inflation only if its percentage increase is at least equal to the inflation rate over the same period; a raise below the inflation rate means real purchasing power has fallen even though the dollar amount is higher.
What is a normal inflation rate?
Long-run inflation in many developed economies has averaged about 2-3% per year, with many central banks targeting around 2%. Actual rates vary widely by country and year and can spike well above that during certain periods.
Why does inflation reduce the value of cash savings?
As prices rise, each dollar buys fewer goods and services, so money held as cash that earns little or no return loses real purchasing power over time even though its face amount stays the same.
Is compound interest the same as inflation?
They use the same compounding math but work in opposite directions for savers: compound interest grows the value of an investment, while inflation erodes the buying power of money, and a real return is roughly the gap between the two.
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