Inflation Calculator
Calculate how inflation erodes purchasing power over time. Enter any amount, years, and inflation rate to see real value year by year. No sign-up needed.
Added May 31, 2026
Input
Result
Enter a value for amount to see your result.
How it works
Calculates what a given amount of money is worth in real (inflation-adjusted) terms across a chosen number of years. Uses compound inflation to show how purchasing power erodes or, in reverse, what today's dollars were worth historically.
Formula
Future equivalent = Amount ÷ (1 + r)^n | Past equivalent = Amount × (1 + r)^n
- Amount
- Starting dollar value
- r
- Annual inflation rate as a decimal (e.g. 3% = 0.03)
- n
- Number of years
Step by step
- 01Enter the amount you want to analyse.
- 02Choose the direction: future (what this money buys later) or past (what older money equals today).
- 03Set the number of years and the expected annual inflation rate.
- 04The calculator compounds inflation annually and shows the year-by-year erosion.
Examples
$10,000 today · 3% inflation · 10 years
$10,000 today will only buy what $7,441 buys now after 10 years at 3% inflation — a real loss of $2,559.
Inputs
- Amount:
- 10000
- Calculate:
- future
- Number of years:
- 10
- Annual inflation rate:
- 3
Result
- Equivalent value:
- 7440.94
$50,000 today · 2% inflation · 20 years
At 2% annual inflation, $50,000 in savings loses about $16,351 in purchasing power over 20 years.
Inputs
- Amount:
- 50000
- Calculate:
- future
- Number of years:
- 20
- Annual inflation rate:
- 2
Result
- Equivalent value:
- 33648.76
Frequently asked questions
What inflation rate should I use?
The US long-run average CPI inflation is around 3% per year. For conservative financial planning, 2–2.5% is common. For recent years (2021–2023 spike), actual CPI peaked above 8%. Use 3% as a baseline unless you have a specific period in mind.
What is the difference between nominal and real value?
Nominal value is the face value in today's dollars. Real value adjusts for inflation and reflects actual purchasing power. $10,000 nominal in 10 years is still $10,000 on paper — but it will buy less than $10,000 worth of goods at today's prices.
How does this affect my savings?
If your savings account earns less than inflation (e.g. 1% APY when inflation is 3%), your real return is negative — your savings shrink in purchasing power each year. To preserve value, your investment return must exceed inflation.
What is cumulative inflation?
Cumulative inflation is the total percentage price increase over the entire period, not per year. At 3% annual inflation over 10 years, cumulative inflation is (1.03^10 − 1) × 100 ≈ 34.4% — meaning a basket of goods that cost $100 now costs $134.40.