Inflation Calculator
The Inflation Calculator shows how much a fixed amount of money today will need to grow to buy the same goods in the future at your chosen inflation rate.
What this means
Inflation erodes purchasing power: the same dollars buy less over time. This calculator translates today's prices into their future equivalents so you can plan realistically.
How we calculate it
Formula
Future cost = amount × (1 + inflation rate)^years.Worked example
$100 today at 3% inflation for 10 years:
- 1Future cost = 100 × (1.03)^10
- 2Future cost ≈ $134.39
Important assumptions
- Inflation applies at a constant annual rate.
- Historical rates don't guarantee future inflation.
Frequently asked questions
What inflation rate should I use?
Long-run U.S. inflation has averaged around 2–3% annually. Use the current rate for short-term planning and a slightly higher one for long horizons.
How does inflation affect retirement savings?
Your retirement number should grow with inflation — a fixed nominal goal buys less each year. Model your withdrawals using future, inflation-adjusted dollars.