How to use the Inflation Calculator
- Choose whether you want a future price or the future value of your money.
- Enter today's amount.
- Enter an average yearly inflation rate and the number of years.
What does this tool do?
Inflation means prices rise over time, so the same amount of money buys less. At 3% a year, prices roughly double in 24 years.
This tool projects forward using a rate you choose. It doesn't use historical price index data — for past inflation, check your country's official statistics office.
Why use it?
- Plan for future costs like education or retirement.
- Understand why cash savings lose value.
- Check whether a savings rate beats inflation.
Example
At 3% average inflation, something that costs $1,000 today will cost about $1,343.92 in 10 years. Put the other way, $1,000 in 10 years will only buy what $744.09 buys today.
The formula
Future cost = Amount × (1 + inflation)^years
Future buying power = Amount ÷ (1 + inflation)^years
Accuracy and limits
- Real inflation changes every year and differs by category (housing, food, energy). A single average rate is a simplification.
Privacy
The calculation happens instantly in your browser. The numbers you enter are not sent to our servers or saved. There's no account to create and nothing to install.
Last reviewed by the M2Toolkit team.