Inflation Calculator

Future prices and the shrinking purchasing power of money.

Inflation Calculator

Worked example result

Cost of the same item in the future	$1,628.89
Purchasing power of the amount	$613.91
Cumulative inflation	62.89%

At 5% inflation, a $1,000 item costs $1,628.89 in 10 years — and $1,000 kept as cash buys only $613.91 worth of goods.

Inflation quietly reprices everything. Enter an amount, an inflation rate and a number of years to see what that item will cost in the future — and what today's amount will actually be worth in purchasing power.

The formula

Future cost = Amount × (1 + i)^n; Purchasing power = Amount ÷ (1 + i)^n

Worked example

At 5% inflation, a $1,000 item costs $1,628.89 in 10 years — and $1,000 kept as cash buys only $613.91 worth of goods.

The example is pre-loaded in the result panel — press Calculate with your own numbers to replace it.

Frequently asked questions

What inflation rate should I use?

US consumer inflation has averaged roughly 3% over long periods, though individual years vary widely. The Federal Reserve targets 2%.

What is the Rule of 72 for inflation?

Divide 72 by the inflation rate to estimate how many years until prices double: at 4%, about 18 years.

Category: Finance calculators

Inflation Calculator