Inflation Calculator
Calculate how much a present-day amount will be worth in the future after inflation erodes its purchasing power.
Inflation Calculator
Calculate how much a present-day amount will be worth in the future after inflation erodes its purchasing power.
Real-World Examples
You have $50,000 in cash. At 3% inflation over 20 years, what is its future purchasing power?
$27,683.79 (44.63% lost)
Your salary is $60,000. If it stays flat and inflation is 2.5% for 10 years, what is the real value?
$47,020.55 (21.63% lost)
You have $10,000. At 7% inflation over 10 years, what will you need to match it?
$19,671.51 future value needed
Common Mistakes to Avoid
Confusing nominal and real returns
Fix: A 7% investment return with 3% inflation gives a real return of about 3.9%, not 7%. Always subtract inflation to understand true growth in purchasing power.
Assuming a constant inflation rate
Fix: Inflation fluctuates year to year. The historical US average is around 3%, but it has ranged from near 0% to over 13%. Use a range of scenarios for planning.
Forgetting that inflation affects different goods differently
Fix: The general inflation rate is an average. Healthcare and education costs have historically risen faster than the overall rate, while technology has gotten cheaper.