Inflation Calculator
Calculate the future cost of an amount and its equivalent purchasing power after inflation, instantly in your browser.
How to use the Inflation Calculator
- Enter the current amount of money or the price of something today.
- Enter the expected annual inflation rate as a percentage.
- Enter the number of years.
- Click Run to see the future cost and the equivalent purchasing power of today's amount.
How the Inflation Calculator works
Inflation compounds just like interest, but works against you. If prices rise by a fixed rate each year, the future cost of something that costs A today is:
Future cost = A × (1 + inflation rate)years
Purchasing power runs the other way: the calculator divides the current amount by the same growth factor to show what that sum of money will be worth in today's terms. At 3% inflation, prices roughly double in 24 years, which is why savings and retirement projections should be compared against inflation.
Frequently asked questions
- Is this inflation calculator free?
- Yes. Calculate the effect of inflation at no cost, with no account required.
- How is the future cost calculated?
- Future cost = Current amount x (1 + inflation rate) ^ years.
- What does 'equivalent purchasing power' mean?
- It shows what your current amount will be worth in today's terms after inflation erodes its purchasing power over the given period.