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Inflation calculatorInflation calculator: estimate future cost and buying power

Compare the future cost of a purchase with the future purchasing power of a fixed cash amount. At an assumed 3% annual inflation rate, a basket costing $10,000 today would cost $13,439.16 after 10 years. A fixed $10,000 then would buy what $7,440.94 buys today. The rate is your scenario input. This is not a historical CPI lookup or an inflation forecast. The table shows the same constant-rate calculation at each year, with a final partial year when applicable.

Purchasing power — in today’s money

$7,441

after 10 years at 3% inflation

Future cost

$13,439

Value lost to inflation

$2,559

How to use

  1. 1

    Enter an amount in today's money — a salary, a price, a savings balance.

  2. 2

    Set the annual inflation rate (3% is a common long-run assumption).

  3. 3

    Choose how many years ahead to look.

  4. 4

    Read both directions: what it will cost then, and what today's money buys.

  5. 5

    Raise the rate to stress-test against high-inflation decades.

Benefits

Future prices, today

See what today's $100,000 salary needs to be in 20 years just to stand still.

Both directions

Future cost and eroded purchasing power side by side — the full picture.

Retirement reality check

Pairs with the retirement calculator: nominal millions mean little without this.

Deflation handled too

Negative rates work mathematically — rare, but the tool doesn't break.

How it works

Ct=P(1+i)tVt=P(1+i)tC_t = P(1+i)^t \qquad V_t = \frac{P}{(1+i)^t}
P
Amount today — the starting figure in current dollars
i
Annual inflation rate, as a decimal (3% = 0.03)
t
Years into the future (fractions allowed)

Future cost = amount * (1 + i)^years. Purchasing power in today's money = amount / (1 + i)^years, where i is the annual inflation rate as a decimal. Real inflation varies, and your household costs can differ from a price index. Compare several rates rather than relying on one assumption.

Worked example

$10,000 at 3% inflation for 10 years costs $13,439.16 in future prices — but its purchasing power is only $7,440.94 in today’s money. You lose $2,559.06 of buying power without spending a cent.

Understanding your results

The future-cost figure applies your assumed constant annual inflation rate to the amount and period entered. The purchasing-power figure expresses a future amount in current dollars. This is a scenario calculation, not a historical CPI lookup or inflation forecast.

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Sources and methodology

These resources explain related concepts. They do not certify or endorse this calculator. See the assumptions and worked example above.

Frequently asked questions

In future prices it grows to $13,439.16, but its purchasing power — what it actually buys — falls to $7,440.94. You lose $2,559.06 of buying power, about a quarter of the value, over the decade. That is why idle cash is a losing position whenever inflation outruns your savings rate.

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Figures are estimates for education only — not financial advice. Results depend on the assumptions you enter. Read the full disclaimer.