See how inflation erodes the buying power of money over time at a rate you choose.
You supply the rate, so it works fully offline.
How do you calculate the effect of inflation on money over time?
Future cost = amount × (1 + rate)^years, and future buying power = amount ÷ (1 + rate)^years; the difference is the purchasing power lost to inflation. For example, 1,000 today at 3% inflation for 10 years has the buying power of about 744, while the same goods would cost roughly 1,344. A long-run average of around 2–3% gives a realistic estimate.
Understanding your result
Because you choose the rate, the tool needs no external data and works anywhere. Use a long-run average (often around 2–3%) for a realistic estimate.
Formula and method
Future cost = amount × (1 + rate)^years. Future buying power = amount ÷ (1 + rate)^years. The difference is the purchasing power lost to inflation.
Assumptions and limitations
Results are estimates for general guidance only and not financial or investment advice. They assume a single constant rate you choose, whereas real inflation varies year to year and differs by country and spending basket. Actual future prices and buying power depend on economic conditions and your own circumstances, so treat the figures as illustrative.
Worked example
1,000 today, at 3% inflation for 10 years, has the buying power of about 744, while the same basket of goods would cost roughly 1,344.
How to use this tool
- Enter an amount of money today.
- Set an annual inflation rate and a number of years.
- Press Calculate.
About the Inflation Calculator
The Inflation Calculator shows how rising prices reduce the value of money over time. Enter an amount, an annual inflation rate and a number of years to see both future cost and future buying power.
Who should use this tool
Savers, retirees and long-term planners who want to see how rising prices could erode the buying power of money over time. Useful for anyone comparing today's costs with a future goal, sanity-checking a savings target, or explaining why a fixed sum buys less as the years pass.
Benefits
- Shows future cost and future buying power side by side
- Uses any rate you choose, so it works anywhere
- Illustrates the long-term cost of holding cash
- Private and browser-based with no external data needed
Practical use cases
- Estimating what a future goal might cost
- Seeing how much buying power cash loses over time
- Comparing a salary or budget across many years
- Explaining purchasing power to students or clients
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Frequently asked questions
What inflation rate should I use?
Many economies target around 2%, with long-run averages near 3%. Use your region’s figure for the most relevant result.
What is the difference between future cost and future buying power?
Future cost is how much more you would need to buy the same goods after prices rise, growing the amount by the rate each year. Future buying power is what today's money would be worth then, shrinking it by the same rate. One inflates the figure, the other discounts it.
Does this account for pay rises or investment growth?
No. It models only the effect of inflation on a fixed amount and ignores income increases, interest or investment returns that might offset it. To judge whether you are keeping pace, compare this result against how you expect your earnings or savings to grow separately.