Prices go up over time, so the same amount of money buys less each year. This inflation calculator shows what an amount is worth in the future in today’s money, and how much you will need to keep the same purchasing power.
How to use this calculator
- Amount today: any sum, such as monthly expenses or savings.
- Yearly inflation: the average rise in prices you assume.
- Years: how far into the future you look.
Example
With 2.5% inflation a year, $1,000 kept in cash for 20 years buys what about $610 buys today: about 39% of its purchasing power is lost. To buy the same things in 20 years, you would need about $1,639.
Why it matters for savers
Inflation is the reason a savings plan should look at the real return, which is the return after inflation. Money that earns 2% a year while prices rise 2.5% a year is slowly losing value. For long-term goals like retirement, always check what your target amount will be worth in today’s money.
The formula
Value in today’s money: Amount / (1 + inflation)^years. Amount needed later: Amount × (1 + inflation)^years.
Frequently asked questions
What inflation rate should I use?
Central banks such as the US Federal Reserve and the European Central Bank aim for about 2% a year over the medium term, but actual inflation can be much higher or lower in some years. Try several rates.
Does inflation affect debts?
Yes. A fixed loan payment gets easier to pay over time if incomes rise with prices, because its real value falls.
Related calculators
- Compound Interest Calculator: See how a starting amount and monthly savings grow over time.
- Retirement Savings Calculator: Estimate your savings at retirement and the monthly income they could provide.
- How Long to Reach a Savings Goal: How long it takes to reach a target amount, like your first million.
This page was written with the help of AI tools (Claude, by Anthropic). The calculator runs entirely in your browser: nothing you enter is sent or stored.