See how inflation erodes money over time. This free inflation calculator shows the future cost of an amount, its purchasing power in today’s terms, and cumulative inflation over any period.
Results update automatically as you type. Assumes a constant annual inflation rate.
Use this free inflation calculator to see how rising prices affect the value of money over time. Enter an amount, an inflation rate and a number of years to see the future cost and how much purchasing power you’d lose.
An inflation calculator shows how the value of money changes over time. Enter an amount, an annual inflation rate and a period, and it returns the future cost of that amount, its future purchasing power in today’s terms, and the cumulative inflation over the period.
Inflation quietly erodes savings: money sitting idle buys less each year. Seeing the gap helps explain why investing to outpace inflation matters.
Future cost = Amount × (1 + rate)years
For $1,000 at 3% inflation over 10 years: $1,000 × 1.0310 ≈ $1,344. Put another way, $1,000 today will have the buying power of only about $744 in ten years.
| Term | What it means |
|---|---|
| Inflation | The rise in prices over time, reducing money’s buying power. |
| Purchasing power | How much a sum of money can actually buy. |
| Cumulative inflation | The total price increase over a whole period. |
| Real return | An investment return after subtracting inflation. |
| CPI | Consumer Price Index — a common measure of inflation. |
Inflation raises prices over time, so a fixed sum of money buys less each year. At 3% inflation, $1,000 today has the purchasing power of only about $744 in ten years.
Multiply the amount by (1 + inflation rate)years. At 3% over 10 years, $1,000 becomes $1,000 × 1.0310 ≈ $1,344.
Many central banks target around 2% per year, and long-run averages often sit near 2–3%. Rates spike higher in some periods and economies, so use a figure that fits your situation.
Inflation is the rate prices rise; purchasing power is how much your money can buy. As inflation goes up, purchasing power goes down.
Holding cash loses value to inflation, so investing for returns above the inflation rate helps preserve real wealth. The right approach depends on your goals and risk tolerance.
Yes, this inflation calculator is completely free, needs no sign-up, and gives instant results directly in your browser.