Inflation calculator
What something will cost later, and what your money will buy, at a rate you choose.
Result
- Cost in 10 years
- $1,343.92
- What $1,000 will buy, in today's money
- $744.09
- Total price rise
- 34.39%
- Purchasing power lost
- 25.59%
How this was calculated
Growth factor
(1 + rate)^years
(1 + 0.03)^10 = 1.343916
Future cost
Amount × factor
$1,000.00 × 1.343916 = $1,343.92
Purchasing power
Amount ÷ factor
$1,000.00 ÷ 1.343916 = $744.09
What this calculation assumes
- The inflation rate you enter stays the same every year. Real inflation changes year to year; official figures come from statistics offices (for example the US Bureau of Labor Statistics CPI).
- This is a projection from your rate, not historical data. A historical CPI version is planned.
Estimates for information only. They are not financial advice, a loan offer or a guarantee of any return, rate or approval. Lenders and providers calculate with their own terms; check yours before you decide.
The formula
Future cost = amount × (1 + rate)^years
At 3% inflation, something that costs $1,000 today costs $1,000 × 1.03^10 = $1,343.92 in 10 years. Turned around, $1,000 kept in cash for those 10 years buys only what $744.09 buys today: purchasing power = amount ÷ (1 + rate)^years.
Choosing a rate
Many central banks target about 2% a year over the long run, but actual inflation varies and has run far higher in some years. Try a few rates and use Pin & compare to see the range. For past prices you need official consumer price index data from your country's statistics office.
Questions people ask
How does inflation affect savings?
If your savings earn less than inflation, their real value falls. Compare the rate on your account with the inflation rate, or run both through the compound interest calculator.
Can inflation be negative?
Yes, that is deflation. Enter a negative rate to see prices fall.