See how purchasing power changes over time. Calculate the future equivalent of today\'s dollars or what today\'s amount was worth in the past.
Inflation Inputs
Purchasing Power Results
$10,000 in 10 years costs
$13,439
Real value of $10,000 today
$7,441
Purchasing power lost
$2,559
Total inflation over period
34.4%
At 3% annual inflation, $10,000 today will have the same purchasing power as $13,439 in 10 years. Equivalently, today\'s $10,000 buys what only $7,441 could buy in 10 years.
The Inflation Calculator shows how rising prices erode the purchasing power of money over time. Enter an amount, an expected annual inflation rate, and a number of years, and it calculates two things: how much you'd need in the future to buy what that amount buys today, and conversely, what today's amount would actually be 'worth' (in today's purchasing power) after inflation eats away at it.
This is especially useful for long-term planning — a retirement number that sounds comfortable today may not stretch nearly as far in 20 or 30 years. Pair it with the Compound Interest Calculator to check whether your savings growth rate is actually outpacing inflation, which is what determines whether you're gaining or losing real wealth.
Future Cost = PV × (1 + r)^n | Present Value = PV ÷ (1 + r)^nThe first formula answers 'how much will this cost in the future?' — it grows today's amount by the inflation rate, compounded annually. The second formula answers 'what is today's amount equivalent to in the future, in terms of today's buying power?' — it shrinks the amount by the same factor.
Example 1: What $10,000 will cost in 10 years
$10,000 today, 3% annual inflation, 10 years.
You'd need about $13,439 in 10 years to buy what $10,000 buys today — purchasing power loss of roughly $2,560 on today's amount.
Example 2: A $75,000 salary in retirement-planning terms
$75,000 desired annual retirement income (in today's dollars), 3% inflation, 25 years until retirement.
You'd need roughly $157,000/year at retirement just to maintain the same purchasing power as $75,000 today — nearly double the nominal number.
Example 3: High inflation scenario
$10,000 today, 6% annual inflation (a high-inflation year like parts of 2021–2022), 5 years.
Future cost rises to about $13,382 — over $3,380 of purchasing power lost in just 5 years, more than double the loss at 3% inflation.
Methodology
Future value = PV × (1 + r)^n. Present value = FV ÷ (1 + r)^n. Where r = annual inflation rate and n = years.
Inflation is the rate at which the general price level of goods and services rises over time, eroding purchasing power. The US Federal Reserve targets 2% annual inflation. When inflation is high, each dollar buys fewer goods than it did before.
If your savings account earns 1% interest but inflation is 3%, you are losing 2% of purchasing power each year in real terms. To build wealth, your investments must return more than the inflation rate.
US inflation has averaged approximately 3.0–3.5% per year over the past century. The 1970s saw peaks above 10%. Since 1990, average inflation has been closer to 2.5%. The Fed targets 2% as its long-run goal.
Disclaimer: Calculations are for informational purposes only and do not constitute professional financial advice. Please consult with a certified professional before making financial decisions.