Inflation Calculator
See how inflation erodes the buying power of your money over time, and how much you will need in the future to buy what costs less today.
Frequently Asked Questions
How does inflation reduce buying power?
Prices compound upward each year, so a fixed amount of money buys progressively less. Even 3–4% inflation roughly halves purchasing power over about two decades.
What rate should I use?
Pick a rate that fits your country and period — long-run averages are often 2–6%. Your personal inflation may differ based on what you spend on.
Is the result exact?
It is an estimate based on a constant rate you choose; real inflation varies year to year.
Understanding the Inflation Calculator
An inflation calculator shows how the purchasing power of money changes over time as prices rise. Enter an amount, a start and end year or an inflation rate, and a time horizon to see what that money would be worth in real terms, and how much you would need in the future to buy the same goods today. It is for savers, retirees, and planners who want to think in today's money. Results are estimates based on the rate you choose; actual inflation varies. Calculations run privately in your browser.
How it works
Inflation compounds, so the tool grows prices by the annual rate over the number of years, much like compound interest working against you. To find future cost, it multiplies today's amount by (1 + rate) raised to the number of years. To find today's purchasing power of a future sum, it divides instead, discounting the amount back to present value. If you supply historical start and end values, it uses the ratio of price indexes between those years. The result separates the nominal figure from its real value, making it clear how a fixed amount buys less as time passes.
Worked example
Suppose 10,000 today with inflation averaging 5% per year for 10 years. Future cost = 10,000 × (1.05)^10 = 10,000 × 1.6289 = about 16,289. So you would need roughly 16,289 in ten years to buy what 10,000 buys now. Viewed the other way, 10,000 received in ten years would be worth only 10,000 / 1.6289 = about 6,139 in today's purchasing power, a loss of nearly 39% in real terms.
Tips & common mistakes
- Inflation compounds, so even a modest 3-4% rate roughly halves purchasing power over about two decades.
- Average historical inflation differs by country and period; pick a rate that fits your context.
- Cash and low-yield savings can lose real value when their return trails the inflation rate.
- Use real (inflation-adjusted) returns when planning long-term goals so figures stay in today's money.
- Your personal inflation rate may differ from the headline index depending on what you spend on.
Sources & methodology
- • U.S. Bureau of Labor Statistics — Consumer Price Index and CPI inflation calculator (https://www.bls.gov/cpi)
- • Investopedia — Inflation and Purchasing Power (https://www.investopedia.com/terms/i/inflation.asp)
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Reviewed by the TopOpenTools editorial team · Last updated June 2026. These tools provide general estimates for educational purposes only and are not financial, tax, insurance, investment, or medical advice. Verify important decisions with a qualified professional.