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 by the CalcBundle Research & Editorial Team · Reviewed by the Quality Review Team · Transparent formulas · results are estimates, not advice. · Updated
Future cost
Enter an amount and number of years greater than zero.
What an inflation calculator does
An inflation calculator makes the slow, invisible erosion of money's value visible. Inflation is the gradual rise in prices that means each unit of currency buys a little less as time passes — and because it compounds, its long-run effect is far larger than the modest annual percentage suggests. This calculator works in both directions: it can project what today's prices will become at a given inflation rate, and it can discount a future amount back to what it is worth in today's money. Both views answer the question that matters for any long-term plan: not how many dollars you will have, but what those dollars will actually buy.
How inflation reduces purchasing power
- Future cost = current amount × (1 + inflation)years
- Purchasing power = amount ÷ (1 + inflation)years
The two formulas are mirror images. The first tells you what a basket of goods will cost later; the second tells you what a sum of money held as cash will be worth in real terms. Together they explain why holding large amounts of idle cash is not the safe, neutral choice it feels like — it is a slow, guaranteed loss of purchasing power.
Future prices and present value
Use future mode to see what today's prices become over your horizon, or present mode to discount a future amount back to today's money — the same discounting logic that underlies how investors value future cash flows. It is exactly the compounding maths that powers the compound interest calculator, only working against you instead of for you.
Why model a range of scenarios
No one knows future inflation, so a single rate can give a false sense of precision. The calculator shows 2%, 3%, 5% and 7% side by side so you can see how sensitive your plan is to the assumption — and the spread is often startling over long periods. A retirement that looks comfortable at 2% inflation can look very different at 5%, which is precisely why stress-testing against several rates is wiser than betting on one.
Worked example
At 3% inflation, something costing $1,000 today will cost about $1,343.92 in ten years — roughly a third more. Flip it around and $1,000 of cash stuffed under the mattress will buy only about $744 of today's goods after that same decade. Neither number is dramatic year to year, but across a working lifetime the compounding is what quietly reshapes what your savings can do.
Related calculators
Fold inflation into long-term planning with the retirement calculator, check whether an expected return beats inflation with the investment return calculator, and see how a rate compounds in your favour with the compound interest calculator.
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.
What is the difference between nominal and real values?
A nominal value is the plain number of dollars, ignoring inflation; a real value adjusts for inflation to reflect actual purchasing power. Your salary rising 3% while prices rise 3% is a nominal raise but no real raise at all. Whenever you compare money across years, it is the real figure that tells you whether you are genuinely better off.
Does inflation affect all my expenses equally?
No. Headline inflation is an average across a broad basket of goods, but your personal inflation rate depends on what you actually buy. Housing, healthcare and education have often risen faster than the average, while some electronics have fallen in price. If your spending is concentrated in fast-rising categories, your real cost of living may climb faster than the official rate suggests.
How can I protect savings from inflation?
The core defence is earning a return that beats inflation over time, which is why cash left idle loses purchasing power while invested money can preserve or grow it. Assets historically used to outpace inflation include broad stock-market investments, real estate and inflation-linked bonds. The goal is a positive real return — growth after inflation, not just before it.
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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.