Inflation Calculator

See what an amount will cost in the future at a given inflation rate, and how much purchasing power your money loses over time, with a yearly table.

How to use the inflation Calculator

  1. Enter the amount.
  2. Enter the average inflation rate (in % / yr).
  3. Enter the number of years.
  4. Choose the currency from the list.
  5. The result updates instantly as you type. There is no button to press.
  6. Use Copy result to copy the figures, or Copy link to share a link that reopens the inflation Calculator with the same inputs.

How it works

Inflation is the general rise in prices over time. When prices go up, each unit of money buys a little less, so the same basket of goods costs more next year than it does today. Even a modest rate compounds: at 3% a year prices double in about 24 years.

This calculator shows inflation from both sides. The future cost tells you how much money you will need later to buy what a given amount buys today, which is useful when planning for school fees, retirement or a long-term project. The future purchasing power tells you what cash kept under the mattress, or in an account paying no interest, will be worth in today's prices.

Central banks in many economies aim for about 2% inflation a year. Actual rates vary widely between countries and decades, and the rate for specific items, such as housing, tuition or healthcare, can be much higher than the headline figure. For a past period, use the official consumer price index (CPI) average for your country.

Formula

Future cost = A × (1 + r)^t Purchasing power = A / (1 + r)^t

A is the amount, r the average annual inflation rate as a decimal and t the number of years. The share of value lost is 1 − 1/(1 + r)^t.

Example

At 3% inflation, something that costs $100 today will cost about $134.39 in 10 years, a 34.4% rise. Looked at the other way, $100 in cash in 10 years' time will only buy about $74.41 of today's goods: it loses roughly a quarter of its value. To keep up, savings need to earn at least 3% a year after tax.

Frequently asked questions

What inflation rate should I use?

For long-term planning, 2–3% is a common assumption in countries with stable inflation targets. Use your country's recent average consumer price index (CPI) change for a more local figure.

What is the difference between nominal and real returns?

A nominal return is the headline growth of your money. A real return subtracts inflation. If savings earn 5% while inflation is 3%, the real return is roughly 2%.

Can inflation be negative?

Yes. Falling prices are called deflation. Enter a negative rate to see how deflation increases what money can buy.

Disclaimer: This calculator gives estimates for general information and education. It is not financial, tax or investment advice. Lenders, banks and tax authorities may round differently, charge fees or apply rules this tool does not model, so confirm figures with a qualified professional or your provider before making decisions.