Inflation Calculator
Inflation quietly erodes purchasing power every year. This calculator shows how much money you will need in the future to buy what a given amount buys today.
How to use this calculator
- Enter amount in today's dollars.
- Enter years into the future.
- Enter assumed annual inflation rate.
- Your results appear instantly below and update as you change the numbers.
How this calculator works
The calculator compounds the inflation rate over the number of years: each year, prices rise by the assumed rate, so the same goods cost more. The result is the future-dollar amount that preserves today's purchasing power. Historically, US inflation has averaged about 3% over the long run, though individual years vary widely — from near zero to over 8%.
Frequently asked questions
What inflation rate should I use?
For long-run planning, 3% is the standard assumption (the Federal Reserve targets 2%, and historical average is around 3%). For short-term budgets, use a recent inflation figure from the CPI.
Does inflation affect my savings?
Yes — inflation is why cash under a mattress loses value. Investments need to beat inflation to grow real purchasing power: a 7% return with 3% inflation means roughly 4% real growth.
What is the difference between nominal and real returns?
Nominal return is the raw percentage your investment earns; real return is that minus inflation. Retirement planning should use real numbers, because what matters is what your money buys, not its face value.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.