Inflation Calculator
Calculate the impact of inflation on your money
Calculator
How to Use
Calculate the impact of inflation on your money
Enter amount
Input the dollar amount to analyze
Set inflation rate
Enter expected annual inflation (default 3%)
Choose time period
Select number of years to project
See impact
View future value and purchasing power loss
Inflation Impact Formula
Future Purchasing Power = Present Value / (1 + inflation)^years Inflation-Adjusted Value = Nominal × (CPI_base / CPI_current)
Divide todays money by cumulative inflation to see real future purchasing power.
Frequently Asked Questions
Inflation is the rate at which prices increase over time. At 3% inflation, $100 today equals $97 in purchasing power next year. Over 20 years, $100 becomes worth only $54 in todays dollars. This is why saving alone isnt enough.
The Consumer Price Index (CPI) tracks prices of a basket of goods and services. Core inflation excludes volatile food and energy prices. Personal Consumption Expenditures (PCE) is the Feds preferred measure. Each captures different aspects.
Invest in assets that historically outpace inflation: stocks (7-10% average), real estate, TIPS (Treasury Inflation-Protected Securities), I-Bonds, commodities. Cash and traditional savings accounts lose value to inflation over time.
US historical average is about 3% annually. The 1970s saw 7-13% inflation. Recent years have ranged from near-zero to peaks of 9%+. For planning, assuming 2-3% inflation is reasonable for long-term projections.