How to use the inflation calculator
- Enter an amount in today's money.
- Choose an average inflation rate — central banks commonly target around 2%.
- Pick the number of years.
The formula
Future cost = Amount × (1 + i)^t; Purchasing power = Amount ÷ (1 + i)^t
i is the annual inflation rate and t the number of years.
Worked example
At 3% inflation, something costing 1,000 today costs about 1,558 in 15 years — and 1,000 in cash would buy only about 64% of what it buys now.
Tips from the numbers
- Compare your savings rate with inflation; earning less means losing real value.
- Plan big future costs — education, retirement — in inflated dollars.
- Use the compound interest calculator to see if your growth outpaces inflation.
Watch: learn the concept
Frequently asked questions
What inflation rate should I use?
Use your country's recent average or a central-bank target for long-range planning, and test a higher rate as a stress case.
What is the Rule of 70?
Dividing 70 by the inflation rate approximates how many years it takes prices to double.
Does inflation affect debt?
Fixed-rate debt becomes cheaper in real terms when inflation is high, while savers lose purchasing power.
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