Inflation Calculator
Inflation quietly shrinks the value of every dollar you hold. This calculator shows both the future cost of today’s expenses and the future purchasing power of today’s savings.
$
%
Future Cost
$18,061
what $10,000 of goods will cost
Purchasing Power
$5,537
what $10,000 will buy
Value Lost
44.6%
What this means: At 3.0% inflation, $10,000 today will only buy $5,537 worth of goods in 20 years.
Inflation Impact Over Time
Inflation adjustment
Future Cost = A(1 + i)^t Purchasing Power = A / (1 + i)^tA is the amount, i the annual inflation rate, and t the number of years.
How It Works
- 1Prices compound upward just like investments — 3% inflation doubles prices roughly every 24 years.
- 2"Future cost" projects expenses forward; "purchasing power" discounts savings back.
- 3Any investment return below inflation is a real-terms loss.
Frequently Asked Questions
What inflation rate should I use?
The U.S. Federal Reserve targets 2%. The long-run historical average is about 3%, with occasional spikes well above that.
How do I protect against inflation?
Historically: equities, real estate, I-Bonds, and TIPS. Cash and low-yield bonds lose purchasing power over long periods.
Why does the rule of 72 work?
Dividing 72 by the inflation (or growth) rate approximates the years needed for prices (or money) to double — a handy compounding shortcut.
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Disclaimer: These calculators are for informational and educational purposes only and do not constitute financial, tax, or investment advice. Results are estimates based on your inputs. Consult a qualified professional before making financial decisions.