Finance calculator
Inflation Calculator
Use this inflation calculator to estimate how rising prices may change the future cost of goods and the buying power of money held over time. It uses a single assumed annual inflation rate, so it is a planning illustration rather than a forecast, because real inflation varies by year, region, and category of spending.
What past money is worth today
See the value of a specific amount from a past year in today's dollars, using official CPI data:
How to use this calculator
- Enter an amount in today's money and an assumed average annual inflation rate.
- Set the number of years you want to project forward.
- Compare the future cost with the future buying power to see both sides of inflation over the period.
Formula
- Future cost = amount today x (1 + inflation rate)^years
- Future buying power = amount today / (1 + inflation rate)^years
- Cumulative inflation = ((1 + inflation rate)^years - 1) x 100
Example calculation
At 3% annual inflation, something that costs $1,000 today would cost about $1,344 in 10 years, while $1,000 left uninvested would have the buying power of about $744 in today's money. Cumulative inflation is about 34%.
How to interpret the results
- Use future cost to understand how much more the same goods may cost later, which is useful for long-range savings and retirement planning.
- Use future buying power to see why money that earns little or no return can lose value in real terms over time.
- Inflation varies by year and category, so test different rates rather than assuming one fixed number holds for the whole period.
Frequently asked questions
What inflation rate should I use?
There is no single correct rate. Many people test a range of assumptions because inflation changes over time and differs across spending categories.
Why does buying power fall?
If prices rise but the money does not grow, the same amount buys less over time. The future buying power result shows that effect in today's money.
Is this a prediction of future prices?
No. It is an illustration based on a constant assumed rate. Actual inflation is variable and cannot be predicted precisely.
Planning disclaimer
MoneyHackWise calculators are for general informational and planning purposes only and do not provide financial, investment, tax, legal, accounting, lending, or business advice. Results are estimates based on the inputs and assumptions shown.
Related guides
- How Inflation Affects Long-Term Money Plans — A plain-language guide to how inflation reduces buying power over time and why long-term savings, retirement, and goal plans should account for rising prices.
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