Inflation Calculator
Enter an amount, an average yearly inflation rate and a number of years. The calculator shows either what the same things will cost in the future or what an amount of money will be worth in today’s terms.
Runs in your browser. Your files are never uploaded.
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How to use Inflation Calculator
- Pick a direction: future cost of today’s amount, or purchasing power of an amount.
- Enter the amount and the average annual inflation rate you want to test.
- Enter the number of years.
- Read the result and the year-by-year table.
What inflation does to money
Inflation is the general rise in prices over time. When prices rise, each unit of money buys less than before. Money kept in a drawer or in an account that pays less than the inflation rate slowly loses purchasing power, even though the number on the balance does not change.
This calculator turns that idea into numbers. In future-cost mode it tells you how much you would need later to buy what a given amount buys now. In purchasing-power mode it does the reverse and tells you what a future sum is worth in today’s money.
Formulas and worked example
Future cost = A × (1 + r)^n. Purchasing power in today’s terms = A ÷ (1 + r)^n. Here A is the amount, r is the annual inflation rate as a decimal and n is the number of years.
Example: at 3 percent a year for 10 years the price multiplier is 1.03^10 = 1.3439. Something that costs 1,000 today would cost about 1,343.92 in 10 years, a rise of about 34.39 percent. Going the other way, 1,000 received in 10 years is worth about 744.09 in today’s money.
Tips and limits
Use inflation results to set realistic goals for savings, retirement and big purchases rather than to predict the future exactly.
- Your personal inflation can differ from official averages, because you buy a different mix of goods.
- Education, healthcare and housing costs can rise faster than general prices.
- Negative rates (deflation) down to −50 percent are accepted for what-if testing.
- The tool assumes one constant rate every year; real inflation changes.
- This is an illustration, not a forecast or financial advice. Nothing leaves your browser.
Why use this inflation calculator tool
- Both directions. Find the future cost of something, or the value of a future sum in today’s money.
- Your own rate. You enter the inflation rate, so the tool never assumes a figure for any country.
- Year-by-year table. See the effect build up over time.
- Works offline. Calculated in your browser.
Frequently asked questions
How is future cost calculated?
Future cost = amount × (1 + rate)^years. With 1,000 today, 3 percent inflation and 10 years, the same basket would cost about 1,343.92.
What is purchasing power?
It is how much you can buy with a sum of money. Purchasing power = amount ÷ (1 + rate)^years. At 3 percent for 10 years, 1,000 in the future buys only what about 744.09 buys today.
Which inflation rate should I use?
Use a long-run average that you consider reasonable, such as figures published by your national statistics office, and try a few higher and lower values. Inflation varies from year to year and by type of spending, so no single rate is certain.
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