Inflation Calculator
See how inflation erodes the value of money over time. Enter an amount, an annual inflation rate and a number of years to find the future equivalent cost and how much your money will really be worth once prices compound.
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Future value = amount times (1 + rate) raised to the power of the number of years. The same goods that cost the amount today will cost the future figure once inflation compounds.
Frequently asked questions
How does this inflation calculator work?
It compounds inflation year on year using the formula future value equals amount times (1 plus rate) to the power of years. At 3 percent for 10 years, 1,000 today equals about 1,344 in future prices for the same basket of goods.
What inflation rate should I use?
Central banks often target around 2 percent, while long run averages tend to sit between 2 and 3 percent. For planning you can use the official target, a recent published rate, or a slightly higher figure to be cautious.
What is the difference between future cost and buying power?
Future cost shows how much more you will need to buy the same things later. Buying power shows the opposite view, how little today's fixed amount of money will purchase after inflation has eaten into it.