Inflation Calculator
See what today's dollars will be worth in the future and how much prices will rise at a given inflation rate.
Inflation is compounding in reverse. Prices grow on top of last year's prices, so money buys a little less every year.
This calculator shows the future cost of something that costs a set amount today, and what today's money will buy later.
How it works
The amount is multiplied by one plus the inflation rate for each year. That gives the future cost.
Dividing instead of multiplying gives the buying power of the same dollars in the future.
The formula
i = inflation rate as a decimal, t = years.
Tips
- The Federal Reserve targets 2% inflation. The long run US average is closer to 3%.
- Any savings earning less than inflation are losing value in real terms.
Frequently asked questions
What inflation rate should I use?
3% is a reasonable long run planning figure for the US. Use a higher number to stress test a plan.
Does inflation affect debt?
Yes, in your favor. A fixed loan payment gets easier to meet as wages and prices rise.
This is not financial advice. Nothing on this site is investment, tax, legal or financial advice of any kind.
The calculators give simplified estimates from the numbers you enter. They ignore taxes, fees, rate changes and real market returns, and they can be wrong.
Do not make financial decisions based on these results. Speak to a licensed financial adviser, accountant or lender before acting, and read the full disclaimer.