Inflation Calculator
See what your money will really be worth, or find out what you'll need later to match what it buys today.
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- Your numbers stay in your browser
3% is commonly cited as the long-term U.S. average. Recent years have run both higher and lower -- check current CPI data if you want a more precise figure.
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This is a general estimate, not financial, investment, or tax advice.
Built by Cedrick Reese · How this is verified
How to Use This Calculator
Choose whether you want to find the future amount needed to match today's buying power, or how much purchasing power a fixed amount loses over time. Enter the amount, an inflation rate (3% is a common long-term planning default), and the number of years. The result updates as you type, along with a year-by-year chart.
The Inflation Formula
This calculator uses the standard compound inflation formula, the same structure as compound interest but working against your money instead of for it:
Future amount needed = Today's amount × (1 + rate)years
Purchasing power = Today's amount ÷ (1 + rate)years
A $10,000 amount at 3% inflation over 10 years would need to grow to $13,439.16 just to buy what $10,000 buys today. Looked at the other way, that same $10,000 will only have the purchasing power of about $7,440.94 in 10 years' time -- a loss of roughly 25.6%. See Compound Interest Formula Explained for the closely related savings-growth version of this same formula.
Frequently Asked Questions
What inflation rate should I use?
3% is commonly used as a long-term U.S. average for planning purposes. For shorter time frames, some planners use a lower rate closer to the Federal Reserve's target; for conservative retirement planning, some use a higher rate. Check current CPI data for a more precise recent figure.
What's the difference between the two modes?
"Future amount needed" answers "how much will I need later to match what this buys today." "Purchasing power lost" answers "how much will this same amount actually be worth later." They're the same formula used in opposite directions.
How does this relate to my savings account's interest rate?
If your account's APY is lower than the inflation rate, your balance is growing in dollar terms but losing purchasing power in real terms. See the High-Yield Savings Calculator to compare account rates directly.
Does this account for taxes?
No. This calculator only models inflation's effect on purchasing power. Taxes on any investment gains would reduce your real return further, separately from what's shown here.
Sources
- Consumer Price Index (CPI), the standard measure of U.S. inflation, published monthly — U.S. Bureau of Labor Statistics
How This Calculator Is Verified
Built by Cedrick Reese. The real-value calculation here adjusts your target amount using actual CPI data published by the U.S. Bureau of Labor Statistics, and the worked example on this page is cross-checked by hand before it goes live.
Last reviewed: September 2, 2026