Inflation Calculator
Inflation erodes the value of money over time: the same dollar buys a little less each year. This inflation calculator shows that effect both ways. Given an amount today, it tells you what you would need in the future to buy the same goods. Given a future amount, it tells you what that money is worth in today's purchasing power. Understanding inflation is essential for retirement planning, salary negotiations, and judging whether an investment's return is real growth or just keeping pace with prices.
Calculate
Default result: $1,343.92
Inflation Calculator · Materials
calculators.dev
Future cost (what you'll need)
1000 × 3 × 10
Shopping list
- Today's value of that future amount
- $744.09
- Purchasing power lost
- $255.91
Est. total
$1,343.92
Estimate — confirm w/ supplier · calculators.dev
This calculator provides estimates for general informational purposes only and is not financial, investment, tax, or legal advice. Results are projections based on the figures you enter and the stated assumptions, and actual outcomes will differ. Consult a qualified financial professional before making borrowing, saving, or investment decisions.
Reviewed by the calculators.dev team · Last updated 2026-06-24
Formula reviewed against Standard real-vs-nominal relationship (future = amount × (1 + i)^t; today's value = amount ÷ (1 + i)^t) — hand derivation (10-VERIFICATION.md)
How to calculate
Enter an amount, the average annual inflation rate, and the number of years. The calculator compounds the rate over the period to get the future cost of that amount, and discounts by the same factor to get today's value of a future amount. For $1,000 at 3% over 10 years, the future cost is about $1,343.92 and the today's-value of a future $1,000 is about $744.09. The purchasing-power-lost line shows how much real value a future amount gives up to inflation.
Future cost = amount × (1 + inflation)^years — what you will need to buy the same goods later. Today's value = amount ÷ (1 + inflation)^years — what a future amount is worth in current purchasing power. Purchasing power lost = amount − today's value. The rate is assumed constant over the whole period; real inflation varies year to year.
Example calculation
At 3% annual inflation, something that costs $1,000 today will cost about $1,343.92 in 10 years — that is how much you would need to buy the same goods. Looked at the other way, $1,000 received 10 years from now is worth only about $744.09 in today's purchasing power, a loss of roughly $255.91.
- futureNominal
- $1,343.92
- todaysValue
- $744.09
- purchasingPowerLost
- $255.91
Assumptions
- Inflation is assumed constant over the whole period; actual rates vary year to year and differ by category of spending.
- The calculation uses a single average rate, not a basket of specific goods; your personal inflation may differ.
- Compounding is annual; the result is a planning estimate, not an official cost-of-living figure.
Common mistakes
- Confusing the two directions. The future cost is larger than the amount; the today's value of a future amount is smaller.
- Using a one-off recent inflation spike as the long-run rate, which overstates the effect over many years.
- Ignoring inflation when planning for retirement, which makes a future nest egg look larger than its real spending power.
Frequently asked questions
What will my money be worth in the future?
Less, in purchasing-power terms. Enter the amount and an inflation rate to see what a future sum is worth in today's dollars, and how much it costs in the future to buy what that amount buys today.
What inflation rate should I use?
A long-run average is more reliable than a recent spike. Many planners use roughly 2–3% for general planning, but you can enter any rate that fits your assumptions.
How is this different from compound interest?
The math is the same compounding, but inflation reduces purchasing power while interest grows your money. Comparing an investment's return to inflation tells you the real, inflation-adjusted gain.
Is this an official inflation figure?
No. It uses a single average rate you supply, not an official consumer price index. Treat the result as a planning estimate.