Inflation Calculator

Enter an amount, the annual inflation rate and the number of years to see the compounded effect of inflation.

Result

$1,628.89
$613.91
62.89%

How it is calculated

The tool assumes one fixed inflation rate every year and compounds it. The growth factor is factor = (1 + rate ÷ 100)years. Then future cost = amount × factor (what goods worth the amount today will cost after those years), in today's money = amount ÷ factor (what the same amount would buy in today's terms after those years), and total price increase = (factor − 1) × 100. Amount cannot be negative, years must be between 0 and 200 and may be fractional, and the rate must be above −100. A negative rate is accepted and models falling prices, so the increase comes out negative. A rate of 0 or 0 years returns the amount unchanged. Real inflation changes from year to year, so the output is a projection built on your assumption, not a forecast. Money is shown with the site's default currency symbol.

Worked example

Take an amount of 1,000, an inflation rate of 5% a year and 10 years. Factor: 1.0510 = 1.6289. Future cost: 1,000 × 1.6289 = $1,628.89, so what costs 1,000 today would cost about 1,628.89 then. In today's money: 1,000 ÷ 1.6289 = $613.91, meaning 1,000 held in ten years would buy what 613.91 buys now. Total price increase: (1.6289 − 1) × 100 = 62.89%. The 5% is not simply added ten times, which would give 50%.

Try this example →

Common mistakes

  • Adding the rate each year instead of compounding. 5% for 10 years is a 62.89% increase, not 50%.
  • Entering the rate as a decimal such as 0.05. The field is a percentage, so 5 means 5%, while 0.05 means five hundredths of a percent.
  • Mixing up the two results. Future cost is what the same goods will cost then; in today's money is what the sum will be worth in current purchasing power.
  • Using last year's rate as a certainty for decades. Inflation varies year to year, so a long projection at one fixed rate is only an illustration.
  • Entering the years as months, or a total period like 120 for ten years. The field is years and is limited to 200.

About this calculator

Inflation quietly compounds, the same way interest does: this calculator applies the formula FV = PV × (1 + r)^t, where PV is today's amount, r is the annual inflation rate and t is the number of years, to show what a given sum of today's money will effectively cost in the future — or, viewed the other way, how much purchasing power today's money loses by then.

Because the formula compounds year over year rather than adding a flat percentage each year, even a modest inflation rate erodes value faster than people intuitively expect over long stretches: at 3% annual inflation, prices roughly double in about 24 years, and the same $100 today buys noticeably less than $100 worth of goods a decade from now.

People use inflation projections like this for retirement planning (figuring out how big a nest egg needs to be in future, inflated dollars), salary negotiations (checking whether a raise actually kept pace with rising prices), and general financial literacy — understanding why “the same amount of money” does not mean “the same amount of stuff” over time.

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