Live tool
Finance
Inflation Calculator
See how inflation can change the future cost of today’s money.
Inputs
Results
Future cost of same basket
—
Amount today—
Inflation impact—
Today's buying power of that future amount—
Assumptions—
Results update when you click Calculate. Currency formatting follows your selected code.
How this calculator works
Calculates the future cost of goods and purchasing power decline based on average annual inflation rates.
Formula
Future Value = Present Value × (1 + Inflation Rate)^Years
Worked Example
$5,000 annual spending today subject to 3.5% average annual inflation will require $9,949 in 20 years to maintain identical purchasing power.
Assumptions
- Inflation rate remains uniform across all spending categories annually.
- Compounding occurs once per year.
Limitations
- Consumer Price Index (CPI) components like healthcare and education often inflate faster than general retail goods.
Disclaimer: Educational estimate only. Not financial, tax, insurance, or legal advice. Verify with a local professional. See our Disclaimer.