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.
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.
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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.