Inflation calculator.
See what inflation does to money over time. Enter an amount, a rate and a number of years to find the future cost and the shrinking buying power.
Your money
LiveThe future cost is what a basket costing this amount today will cost later. The buying power is what this amount will be worth in today money.
Future cost
$1,343.92
what $1,000 buys today
A projection at a constant rate, not a forecast or financial advice. Calculations run in your browser; nothing you enter is stored.
How it works
How inflation eats value
Inflation is the rate at which prices rise, which means each unit of money buys a little less over time. The calculator grows your amount by the rate for each year to get the future cost, and shrinks it the same way to show the buying power in today money.
At 3% a year, $1,000 of goods costs about $1,343.92 in ten years, and $1,000 set aside would be worth only about $744.09 in today terms.
Reference
$1,000 over time at 3%.
The future cost of a $1,000 basket at 3% annual inflation.
| Years | Future cost |
|---|---|
| 5 years | $1,159.27 |
| 10 years | $1,343.92 |
| 15 years | $1,557.97 |
| 20 years | $1,806.11 |
| 25 years | $2,093.78 |
| 30 years | $2,427.26 |
The full guide
The complete guide to inflation.
What inflation is, how it erodes money, and what it means for saving and planning.
What is inflation?
Inflation is a general rise in prices across the economy over time. When prices go up, the purchasing power of money goes down, so the same amount buys fewer goods and services than it did before. It is usually quoted as an annual percentage.
A moderate, steady rate is normal in most economies; the problem is the cumulative effect over many years.
How it compounds
Inflation compounds like interest, but against you. A 3% rate does not just take 3% once; it takes 3% of a growing base every year, so the effect snowballs. Over ten years a 3% rate raises prices by about 34.39%, not 30%.
That compounding is why money left idle loses real value steadily, and why long horizons matter so much.
Future cost and buying power
There are two ways to look at inflation. Future cost asks what something will cost later if it costs a set amount today. Buying power asks what a fixed amount of money today will be worth in real terms in the future. They are two sides of the same calculation.
This tool shows both, so you can plan for higher prices and see the real value of money you hold.
Protecting against inflation
Cash loses real value to inflation, so money you will not need for years is often invested to aim for a return above the inflation rate. Assets that tend to rise with prices, and accounts that pay interest, help offset the erosion.
Use the compound interest and investment calculators alongside this one to see whether a return outpaces inflation.
The formula
Money over
time.
Inflation compounds against you. Each year prices rise by the rate, so money held loses real value a little faster every year.
Try compound interest ›# Future cost
future = amount × (1 + rate)^years
# buying power
power = amount / (1 + rate)^years
# worked example
1000 × 1.03^10 = 1,343.92Questions
Inflation questions.
How does inflation affect the value of money?
+
Inflation raises prices, so each dollar buys less over time. At 3% a year, $1,000 of goods costs about $1,343.92 in ten years, and $1,000 held would be worth only about $744.09 in today money.
How do I calculate the future cost with inflation?
+
Multiply the amount by one plus the rate, raised to the number of years. So $1,000 at 3% over ten years is 1000 times 1.03 to the power of 10, about $1,343.92.
What is buying power?
+
Buying power is what a fixed amount of money will be worth in real terms later. You divide the amount by one plus the rate to the power of the years, which shows how much value inflation has taken.
What is a normal inflation rate?
+
Many economies aim for around 2 to 3% a year. Rates vary over time and by country, so use the rate that fits your situation.
Is this inflation calculator free?
+
Yes. It is completely free with no sign-up, and every calculation runs locally in your browser, so nothing you enter is stored or sent anywhere.
About the developer
Jean Borg
Jean builds and maintains every calculator on freecalculators.pro from Malta, with a focus on tools that are fast, free and show their working. The inflation calculator uses a constant-rate model and is provided for education and planning, not as a forecast or financial advice.