Inflation Calculator
See how much money you will need in the future and what today's amount buys after inflation.
Guide
What is an inflation calculation?
An inflation calculation shows how rising prices change the amount needed to buy the same goods later and how much today's money will buy in the future. This Calculator compounds a fixed annual inflation rate over a stated term.
Formula
Future amount needed = Amount today × (1 + Inflation rate ÷ 100) ^ Years. Purchasing power today = Amount today ÷ (1 + Inflation rate ÷ 100) ^ Years. Inflation impact = Future amount needed − Amount today.
Worked example
10,000 today at 3% annual inflation for 10 years requires about 13,439 in the future to buy the same basket of goods. The purchasing power of today's 10,000 in that future year is about 7,441.
Assumptions and limitations
The Calculator assumes a constant annual inflation rate compounded once per year. It does not model changing inflation, taxes, investment returns, or category-specific price changes.
Common questions
Is future amount the same as an investment return?
No. Future amount here is the higher nominal dollars needed to offset inflation, not an account balance. Why show purchasing power? It shows what today's amount would buy after inflation erodes value. Can inflation be zero? Yes. The future amount and purchasing power both equal the entered amount.
Methodology
The Calculator uses the shared annual compounding growth helper with exact decimal arithmetic and rounds only displayed values.