See how inflation changes the future cost of goods and the purchasing power of your money over time.
The method behind this calculator
Enter an amount, an inflation rate and a number of years and this calculator shows two things: what the same basket of goods will cost in future, and what today’s money will be worth in real terms.
It’s a quick way to see why cash loses value if it isn’t invested.
How to fill it in
- Enter the amount in today’s money.
- Enter an assumed inflation rate and number of years.
- Read the future cost and the shrunken purchasing power.
The calculation
future cost = amount × (1 + rate)^years
purchasing power = amount ÷ (1 + rate)^years
Try it with these numbers
Worked through, a amount today of 1,000 produces a in today’s money of $744.09. Underneath, Future cost of same goods comes out at $1,343.92 and Purchasing power of amount at $744.09. Change any field and every figure updates as you type.
Common questions
How does inflation affect my money?
Rising prices mean each dollar buys less over time. At 3% inflation, something costing $100 today costs about $134 in ten years.
What inflation rate should I use?
Long-run averages are often around 2–3%, but it varies. Use a rate that fits your outlook or a central bank target.
Is this financial advice?
No — it’s an illustration of inflation’s effect, not personalised advice.