See how inflation changes the value of money over time. Enter an amount, an annual inflation rate, and a number of years to see the future cost and today's buying power.
Inflation compounds each year. To find the future cost of something that costs a set amount today, multiply by (1 + rate)years. To find what a fixed future amount is worth in today's money, divide by the same factor: amount ÷ (1 + rate)years. The first number shows how prices rise; the second shows how money loses buying power if it is not invested to keep pace with inflation.
Long-run inflation in the United States has averaged around 2 to 3 percent a year, and many central banks target about 2 percent. Use a higher rate if you expect prices to climb faster.
It is how much you would need in the future to buy something that costs your entered amount today, assuming prices rise at the inflation rate you chose.
It is the real value of a fixed future amount expressed in today's dollars. It shows how much purchasing power that money would actually have after inflation.
Holding cash that does not earn at least the inflation rate loses buying power. Many people aim to invest so their returns meet or exceed inflation over time.
No. Real inflation varies year to year and differs by spending category. This is a smooth estimate using a single constant rate.
Disclaimer: This tool provides an estimate for general informational purposes only and is not financial advice. Actual inflation varies over time and by category. Consult a licensed professional before making decisions.