Inflation Calculator
Calculate how inflation affects the value of your money over time. Enter an amount, the expected annual inflation rate, and the number of years to see how much more things will cost in the future and how much purchasing power you will lose.
Inflation Calculator
FAQ
What is inflation?
Inflation is the rate at which the general level of prices for goods and services rises, causing purchasing power to fall. Central banks aim to keep inflation around 2-3% per year.
How does inflation affect savings?
If your savings earn less interest than the inflation rate, the real value of your money decreases over time. For example, at 3% inflation, $10,000 today would need to be $13,439 in 10 years to maintain the same purchasing power.
What is a good inflation rate to use for planning?
Historically, US inflation has averaged about 3% per year. For conservative financial planning, many advisors suggest using 3-4%. Check current CPI data for the most up-to-date figures.