Inflation Calculator
See how inflation affects the future cost of something today, and how much your money's purchasing power shrinks over time.
Two ways to think about inflation
This calculator shows two related but different things: the 'future cost' figure tells you what something costing this amount today will likely cost in the future at the given inflation rate. The 'future buying power' figure tells you what today's amount will effectively be worth in the future — how much less it will actually be able to buy.
Both numbers come from the same underlying math, just applied in opposite directions — useful depending on whether you're planning a future expense or evaluating how inflation erodes savings sitting in cash.
Why the inflation rate you choose matters a lot
Small differences in assumed inflation rate compound significantly over long time horizons — the difference between 2% and 4% average annual inflation over 30 years is substantial, roughly doubling the erosion of purchasing power. There's no single 'correct' rate to use, since actual inflation varies year to year; using a long-term historical average (commonly cited around 3% for the US) is a reasonable default for long-range planning.
Frequently asked questions
What inflation rate should I use?
A commonly used long-term historical average is around 3% for the US, though actual inflation varies significantly year to year — use a rate appropriate to your planning horizon and risk tolerance.
Why does cash lose value if I'm not spending it?
Even unspent cash loses purchasing power over time as prices rise — this is why holding large amounts of cash long-term, without any return, means it buys progressively less as years pass.