Inflation calculator
What something will cost later, and what your money will buy, at a rate you choose.
Result
- Cost in 10 years
- $1,343.92
- What $1,000 will buy, in today's money
- $744.09
- Total price rise
- 34.39%
- Purchasing power lost
- 25.59%
How this was calculated
Growth factor
(1 + rate)^years
(1 + 0.03)^10 = 1.343916
Future cost
Amount × factor
$1,000.00 × 1.343916 = $1,343.92
Purchasing power
Amount ÷ factor
$1,000.00 ÷ 1.343916 = $744.09
What this calculation assumes
- The inflation rate you enter stays the same every year. Real inflation changes year to year; official figures come from statistics offices (for example the US Bureau of Labor Statistics CPI).
- This is a projection from your rate, not historical data. A historical CPI version is planned.
Estimates for information only. They are not financial advice, a loan offer or a guarantee of any return, rate or approval. Lenders and providers calculate with their own terms; check yours before you decide.
In short
A future price is today's price × (1 + inflation rate)^years. At 3% a year, $1,000 today costs $1,343.92 in 10 years, and $1,000 kept in cash buys only what $744.09 buys now.
The formula
Future cost = amount × (1 + rate)^years
At 3% inflation, something that costs $1,000 today costs $1,000 × 1.03^10 = $1,343.92 in 10 years. Turned around, $1,000 kept in cash for those 10 years buys only what $744.09 buys today: purchasing power = amount ÷ (1 + rate)^years.
Choosing a rate
Many central banks target about 2% a year over the long run, but actual inflation varies and has run far higher in some years. Try a few rates and use Pin & compare to see the range. For past prices you need official consumer price index data from your country's statistics office.
Using the calculator
Enter an amount, a yearly inflation rate and a number of years. The future cost shows what today's price becomes, and the purchasing power shows what the same amount of money will buy in today's terms. The cumulative figure is the total rise over the whole period, which is always larger than the yearly rate times the years because the rises compound.
Questions people ask
How does inflation affect savings?
If your savings earn less than inflation, their real value falls. Compare the rate on your account with the inflation rate, or run both through the compound interest calculator.
Can inflation be negative?
Yes, that is deflation. Enter a negative rate to see prices fall.
How long does it take prices to double?
Divide 72 by the inflation rate for a quick estimate: about 24 years at 3% and 36 years at 2%. The calculator gives the exact figure for any number of years.
What inflation rate should I use?
For long-term plans many people use 2% to 3%, close to the targets of major central banks. For a specific country or period, use the consumer price index from its statistics office, and try a higher rate too to see the range.