Inflation Calculator

See what today's prices will cost in the future — and how much buying power cash loses each year.

Quick answer

An inflation calculator shows how rising prices change future costs and shrink the buying power of cash. At 3% a year, something costing $100 today will cost about $134.39 in 10 years, and $100 held as cash will buy roughly a quarter less. Investing above inflation protects real value.

$
%
yrs
Future cost
$1,344
Today's money is worth
$744.09
Purchasing power lost
25.59%
At 3% inflation, something that costs $1,000 today will cost about $1,344 in 10 years. Put the other way, $1,000 held as cash will only buy what $744.09 buys today — a 25.6% loss of purchasing power.

Key takeaways

  • Inflation compounds like interest.
  • Real return ≈ nominal return − inflation.
  • Cash loses purchasing power every year inflation is positive.
Purchasing power — How much a unit of money can buy; it falls as prices rise.

How the inflation calculator works

Inflation compounds just like interest. Prices rise by the inflation rate each year on top of last year's higher prices, so the value of money held as cash shrinks at the same compounding rate.

Formula

Future cost = amount × (1 + inflation)^years Purchasing power = amount ÷ (1 + inflation)^years

Standard formula. Further reading: U.S. Bureau of Labor Statistics – Consumer Price Index

Worked example

Something that costs $100 today at 3% inflation will cost 100 × 1.03^10 = $134.39 in 10 years.

Change any number above and the plain-English explanation updates instantly with your own figures.

Frequently asked questions

What is a normal inflation rate?

Many central banks, including the US Federal Reserve, target about 2% a year. Long-run US inflation has averaged around 3%.

How do I protect savings from inflation?

Earn a return above inflation, for example with diversified investments, I-bonds or TIPS in the US.

Is this based on actual CPI data?

No, it uses the constant rate you enter. For historical comparisons, use official CPI figures.

What is real return?

Your return minus inflation, approximately. A 7% return with 3% inflation is about a 4% real return.

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Results are estimates for educational purposes and are not financial advice.

Written and reviewed by Muhammad Asif, founder of CalcPane · Formulas verified by automated tests · Updated