Inflation Calculator
Purchasing power over time
Input Details
What costs $1,000.00 today will cost this much in 10 years.
The Silent Wealth Killer
Inflation is often called the "silent tax" because it reduces the value of your money without you seeing a cent leave your account. A dollar today is worth more than a dollar tomorrow.
Understanding inflation is critical for retirement planning, salary negotiations, and investment strategies. This calculator helps you visualize the impact of rising prices on your hard-earned money.
How to Use This Calculator
Enter the starting amount of money
Enter the start year and the end year for the calculation
Input the average annual inflation rate (historical average is ~3%)
Click 'Calculate' to see the future value
Review the breakdown of purchasing power loss over time
Pro Tips
- •Use historical inflation data for accurate past calculations
- •For future planning, a conservative estimate is usually 2.5% - 3.5%
- •Remember that personal inflation varies based on your spending habits
- •Investments need to grow faster than inflation to build real wealth
Future Value Formula
FV = PV × (1 + r)^nWhere:
FV= Future Value (adjusted for inflation)PV= Present Value (starting amount)r= Annual inflation rate (as a decimal)n= Number of yearsExample:
Start Amount= $1,000Inflation Rate= 3% (0.03)Years= 10Calculation:
1000 × (1 + 0.03)^10 = 1000 × 1.3439Result: $1,343.92
Frequently Asked Questions
Inflation is the rate at which the general level of prices for goods and services is rising, and consequently, the purchasing power of currency is falling. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly.