Inflation Calculator
See how inflation changes what money can buy. Enter an amount, a number of years and an expected yearly inflation rate.
When to use this calculator
Use this calculator to understand how rising prices shrink the value of money over time. It is useful for retirement planning, for judging whether savings keep pace with prices, and for estimating what something could cost in the future.
Example inflation results
How this calculator works
Prices grow by the inflation rate each year, so the future cost is the amount times one plus the rate, raised to the number of years. The buying power of the same money is the reverse. Real inflation changes from year to year, so this uses one steady rate.
Step-by-step example
Using these inputs: Amount today ($): 1000; Years: 20; Yearly inflation (%): 3.
If prices rise 3% a year, an item that costs $1,000 today costs about $1,806 in 20 years. In other words, $1,000 would then buy only about $554 worth of today's goods, a loss of 44.63%.
Tips for a better estimate
- Use a range of rates, for example 2%, 3% and 4%, rather than trusting a single guess.
- Compare your savings rate with inflation. If your account pays less than prices rise, buying power falls.
- For retirement plans, think in today's dollars to make the results easier to understand.
FAQ
What inflation rate should I use?
Long-run US inflation has often been around 2 to 3 percent. Use your own estimate.
Does inflation hurt savings?
If your savings earn less than inflation, your buying power falls.
Is this the CPI?
No. This is a simple projection at a rate you choose.
What inflation rate should I use?
US inflation has varied a lot over time. Many planners use about 2% to 3% for long-term estimates. Check the latest figure from the Bureau of Labor Statistics.
Does inflation affect savings?
Yes. If your savings earn less than inflation, your money buys less each year even though the balance grows.
Is inflation the same for everything?
No. Different goods and services change at different rates, so your own cost increase can differ from the average.
Rates and limits last updated: October 2026. This is an estimate for general information only, not financial, tax or legal advice.