Inflation Calculator
Calculate how inflation affects purchasing power over time, with country presets and year-by-year breakdowns.
Value over time
Purchasing power, year by yearYear-by-year breakdown
| Year | Value | % from start | Inflation factor |
|---|
Formula
Past value: Adjusted = Amount × (1 + r)-n
- Amount
- The monetary value to adjust
- r
- Annual inflation rate (as a decimal)
- n
- Number of years
- Future
- Purchasing power decreases — your money buys less over time
- Past
- Cost in today's money — prices have risen since then
With your numbers
- Enter an amount to see the worked example.
Examples
How It Works
Future value mode answers: "If I have $10,000 today, what will it buy in 10 years?" At 3% annual inflation, prices roughly double every 24 years (Rule of 72: 72 ÷ 3 = 24). So $10,000 today buys what $7,441 will buy in 10 years — a 25.6% loss in purchasing power.
Past value mode answers: "What did $10,000 buy 10 years ago in today's dollars?" The same 3% inflation means $10,000 from 10 years ago is equivalent to about $13,439 today — prices have risen 34.4% over that period.
Country presets use approximate long-term average inflation rates. Actual rates vary year to year, so use these as estimates. The US has averaged about 3% historically, the Eurozone targets 2%, and emerging economies like India average 5% or more.
Tips & Best Practices
Frequently Asked Questions
What is inflation?
Inflation is the rate at which the general level of prices for goods and services rises over time. When inflation is 3%, something that costs $100 today will cost about $103 next year. It's measured by indices like the Consumer Price Index (CPI).
Why does the future value show less than the original amount?
In future mode, the calculator shows purchasing power — how much your money will buy in the future. Because prices rise, your dollars buy less over time. $10,000 today buys the same as about $7,441 in 10 years at 3% inflation.
What is a good inflation rate?
Most central banks target 2% annual inflation as ideal for economic growth. Below 2% risks deflation (falling prices, which discourage spending). Above 3-4% erodes savings and wages. Hyperinflation (50%+ per month) destroys economies.
How does inflation affect investments?
Investments must earn more than the inflation rate to grow in real terms. A savings account earning 2% while inflation is 3% actually loses 1% in purchasing power per year. This is why long-term investors favor stocks (historically ~10% nominal, ~7% real return) over cash.
What is the difference between nominal and real values?
Nominal values are the actual dollar amounts (not adjusted for inflation). Real values are adjusted for inflation to reflect true purchasing power. A $50,000 salary in 2000 vs 2024 are both nominal — but the 2000 salary had about 75% more purchasing power in real terms.