Inflation Calculator
Free inflation calculator. Enter an amount and annual inflation rate to see how purchasing power changes over time, with a year-by-year breakdown.
Summary
Year-by-year breakdown
| Year | Future cost | Purchasing power | Cumulative loss |
|---|
Free Online Inflation Calculator
Inflation quietly erodes the value of money over time. Our inflation calculator shows exactly how much purchasing power a given amount loses over the years — and what something that costs a certain amount today will cost in the future at a given inflation rate.
What Does This Calculator Show?
- Future cost — what your amount will be equivalent to in future dollars, accounting for inflation.
- Purchasing power loss — how many dollars of value are lost to inflation over the period.
- Value in today's dollars — the real value of your future money expressed in today's purchasing power.
What is Inflation?
Inflation is the rate at which the general level of prices for goods and services rises over time. As prices rise, each unit of currency buys fewer goods and services — meaning your money is worth less in the future than it is today. Central banks typically target an annual inflation rate of around 2%.
How to Use This Calculator
- Enter the amount of money you want to evaluate.
- Enter the expected annual inflation rate as a percentage.
- Enter the number of years to calculate for.
- Click "Calculate inflation" to see results.
Why Inflation Matters for Financial Planning
Understanding inflation is essential when saving for retirement, setting long-term financial goals, or comparing investment returns. A 5% annual return sounds great, but if inflation is 3%, your real return is only 2%. Our calculator helps you visualize the real impact of inflation on your money's value.