Inflation Calculator
See how inflation changes future prices and the purchasing power of money over time. Enter your own inflation rate, project a future cost, or reverse it to today's value — with illustrative scenarios.
Written and reviewed by the CalcBundle editorial team. Transparent formulas · results are estimates, not advice.
Future cost
Enter an amount and number of years greater than zero.
What is inflation?
Inflation is the gradual rise in prices that erodes the purchasing power of money. A pound or dollar held as cash buys less each year, which is why long-term plans need to account for it.
How inflation reduces purchasing power
- Future cost = current amount × (1 + inflation)years
- Purchasing power = amount ÷ (1 + inflation)years
Future prices and present value
Use future mode to see what today's prices become, or present mode to discount a future amount back to today's money. The same compounding maths powers the compound interest calculator.
Inflation scenarios
Because no one knows future inflation, the calculator shows 2%, 3%, 5% and 7% side by side as illustrative scenarios. Factor inflation into long-term planning with the retirement calculator and compare against expected returns in the investment return calculator.
Example
At 3% inflation, $1,000 today will cost about $1,343.92 in 10 years, and $1,000 of cash will buy only about $744 of today's goods.
Frequently asked questions
What is inflation?
Inflation is the rate at which prices rise over time, which means each unit of money buys a little less each year. It is the reason a fixed amount of cash loses purchasing power if it is not invested.
How does inflation reduce purchasing power?
If prices rise 3% a year, something that costs $100 today costs about $134 in ten years — and $100 kept as cash would buy only about $74 of today's goods. Inflation compounds, just like interest.
How is a future price calculated?
Future cost = current amount × (1 + inflation rate)^years. To reverse it and find today's value of a future amount, divide instead of multiply.
What inflation rate should I use?
It is your assumption — this calculator does not insert live inflation data. Many people model a few scenarios such as 2%, 3%, 5% and 7% to see a realistic range.
Related calculators
Disclaimer. This calculator provides estimates for informational purposes only. Results are based on the information you enter and the assumptions used by the calculator. Actual financial, tax, business valuation, lending, marketplace or investment outcomes may differ. Consider consulting a qualified professional for decisions involving significant amounts of money. Inflation assumptions are user-entered estimates. Illustrative scenarios are for comparison only.