Inflation Calculator

Inflation is the silent fee on cash. At just 3% a year, prices double roughly every 24 years - and the purchasing power of money sitting idle halves. This calculator shows both directions: what an expense costing X today will cost after N years of inflation, and what a fixed sum of money will actually buy in the future.

Your numbers

$
%
yrs
Same purchase will cost —
What your money will buy—
Purchasing power lost—
Buying power keptLost to inflation

Results update as you type and are estimates for education only — they don't account for taxes, fees or your personal situation, and nothing here is financial advice. Your inputs stay on this device.

How it works

  1. Enter an amount - an expense you will face later, or savings you plan to hold.
  2. Set an expected average annual inflation rate. Central banks in the US, UK and euro area target about 2%, but realized rates vary; recent years ran well above target.
  3. Choose the number of years and read the future cost and the equivalent purchasing power in today's terms.

The formula

Future cost = amount x (1 + inflation)^years. Future purchasing power of a fixed sum = amount / (1 + inflation)^years.

Frequently asked questions

What inflation rate should I assume for planning?
For long-horizon planning in the US and Europe, 2-3% is the standard assumption, anchored on central-bank targets of about 2%. For near-term decisions, use the latest official CPI/HICP reading for your country instead of a long-run average.
How do I protect savings from inflation?
Cash for emergencies belongs in the highest-yield safe account you can find, accepting some erosion as the price of liquidity. Long-term money historically keeps ahead of inflation through diversified equities, and government inflation-linked bonds (US TIPS, UK index-linked gilts, similar EU instruments) offer direct protection.
What is the rule of 72?
Divide 72 by an annual rate to approximate the years needed for a quantity to double. It works both ways: at 8% returns money doubles in about 9 years; at 3% inflation, prices double - and cash halves in purchasing power - in about 24.
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