Inflation Calculator
See what today’s prices will cost in the future, and how much buying power cash loses, at any inflation rate.
$1,000 of goods will cost
$1,344
- Buying power of $1,000 cash
- $744
- Purchasing power lost
- 25.6%
- Prices double in
- 23.4 yrs
Cost vs buying power
Explain my numbers
Get a plain-English reading of the result above: what drives it, what the trade-offs are and what to ask a lender or adviser. It is educational, not financial advice. Only these inputs and results are sent, and nothing is stored.
Formulas
Future cost = Price × (1 + π)t · Buying power = Cash ÷ (1 + π)t
Inflation compounds exactly like interest, but against you. That is why a savings rate below inflation loses real value even though the balance rises, and why long-term projections on this site offer a “today’s dollars” view.
Frequently asked questions
How do you calculate the effect of inflation?
Future cost = today’s price × (1 + inflation)^years. Buying power of cash = amount ÷ (1 + inflation)^years. At 3% for 10 years, a $1,000 basket costs $1,344, and $1,000 of cash buys what $744 buys today.
What inflation rate should I use?
The US Federal Reserve targets 2% a year over the long run, measured by the PCE price index. The Bureau of Labor Statistics’ Consumer Price Index (CPI) is the most quoted measure. For long-range planning many people use 2.5–3%.
Can I look up historical inflation between two years?
This calculator projects with a rate you choose. For exact historical changes, the BLS CPI Inflation Calculator uses official monthly CPI data back to 1913.
How do I protect savings from inflation?
Earn a return above inflation. Options include high-yield savings when rates exceed inflation, Treasury Inflation-Protected Securities (TIPS), I bonds, and for long horizons, diversified stock investments.