Inflation Calculator
See how inflation affects purchasing power over time. Enter an amount and inflation rate to find its future value or past purchasing power. Uses compound growth: value = amount × (1 + rate/100)^years.
Inflation calculator
Result
What is this?
Inflation is the rate at which prices rise, reducing purchasing power. This calculator shows: (1) future value—what $100 today will be worth in X years, (2) past value—what $100 today was worth X years ago. It uses compound growth: value = amount × (1 + rate/100)^years for future, or amount ÷ (1 + rate/100)^years for past. Historical US inflation averages about 3% per year, but it varies. Use 2–4% for long-term planning. The calculator helps you think in "today's dollars" when planning for the future or comparing across time.
When to use
Use for retirement planning, salary negotiations, or understanding price changes. Example: $100 at 3% for 10 years ≈ $134 future value. Same $100 today = $74 in past purchasing power. Retirement planners project future needs. Salary negotiators argue for inflation-adjusted raises. Historians compare prices across decades. Anyone saving long-term must account for inflation. Understand why $1 million in 30 years is not the same as $1 million today. Essential for realistic financial planning.
How to use
Future value = Amount × (1 + r/100)^n. Past purchasing power = Amount ÷ (1 + r/100)^n. r = inflation rate (%), n = years.
Example: $100 at 3% for 10 years ≈ $134. Same $100 today = $74 in past purchasing power.
Frequently asked questions
- Inflation is the rate at which prices rise over time, reducing purchasing power. A 3% inflation rate means something costing $100 today would cost about $103 next year.
- Historical US inflation averages about 3% per year. Recent years have varied. Use 2–4% for long-term planning, or check current CPI data for short-term estimates.
- Over time, the same amount of money buys less. $100 today at 3% inflation has the purchasing power of about $74 in 10 years.