How to use
- Enter today's amount in your own currency.
- Enter the expected annual inflation rate and number of years.
- Compare the future cost with the purchasing power of the unchanged amount.
Options explained
- Future cost
- Today's amount × (1 + annual inflation rate) raised to the number of years.
- Purchasing power
- Today's amount divided by the inflation factor. It shows how much the unchanged future amount could buy in today's terms.
- Inflation rate
- The calculator assumes one constant rate compounded annually. Real inflation changes from year to year and differs by product.
Example
At 3% annual inflation, goods that cost 1,000 today would cost about 1,343.92 after 10 years. If you kept the same 1,000, its purchasing power after 10 years would be equivalent to about 744.09 today — a loss of 25.59%.
How prices grow, and money shrinks
What $1,000 of today’s spending costs in the future, and what $1,000 kept as cash will buy then:
| Inflation | Years | Future cost of $1,000 | Buying power of $1,000 | Value lost |
|---|---|---|---|---|
| 2% a year | 10 | $1,218.99 | $820.35 | 18.0% |
| 3% a year | 10 | $1,343.92 | $744.09 | 25.6% |
| 5% a year | 10 | $1,628.89 | $613.91 | 38.6% |
| 3% a year | 20 | $1,806.11 | $553.68 | 44.6% |
| 3% a year | 30 | $2,427.26 | $411.99 | 58.8% |
Many central banks, including the US Federal Reserve and the European Central Bank, aim for about 2% inflation a year. At 3% a year prices roughly double in 24 years — the rule of 72 gives 72 ÷ 3 = 24.
Frequently asked questions
Which currency does the calculator use?
Any currency. Enter an amount in dollars, euros, pounds or another currency and read every monetary result in the same currency.
Is inflation compounded?
Yes. Each year's price increase applies to the previous year's higher price, just like compound growth.
Can I enter a negative inflation rate?
Yes. A negative rate models deflation, so future cost falls and the same amount of money gains purchasing power.
Privacy
This tool runs entirely in your browser. Your files and text are processed on your device and are never uploaded to our servers.