Inflation Calculator
What your money will really be worth in the future
Enter an amount and see what inflation does to it
Free · No sign-up · Updates as you typeInflation means prices creep up every year, so the same money buys a little less each time. This shows what a sum you have today will really be worth years from now, and how much more the same shopping will cost.
$
The sum to check, e.g. 10,000.
Expected average, e.g. 3 for 3%.
How far ahead to look, e.g. 20.
What your $10,000 will buy in 20 years, in today's money
$5,537
In plain terms: at 3.0% inflation, the $10,000 you have today will buy only about $5,537 worth of goods in 20 years, measured in today's prices. Put the other way round, what costs $10,000 today will cost about $18,061 by then. That is 44.6% of your purchasing power gone.
The same goods will cost
$18,061
Purchasing power lost
44.6%
How the rate you assume changes it
Inflation is a guess, so it helps to see a range. Here is the same amount over the same years at different rates.
| Inflation rate | Worth in today's money | Power lost |
|---|---|---|
| 2.0% | $6,730 | 32.7% |
| 3.0% (yours) | $5,537 | 44.6% |
| 4.0% | $4,564 | 54.4% |
| 5.0% | $3,769 | 62.3% |
| Year | Same goods cost | Worth in today's money |
|---|---|---|
| 1 | $10,300 | $9,709 |
| 2 | $10,609 | $9,426 |
| 3 | $10,927 | $9,151 |
| 4 | $11,255 | $8,885 |
| 5 | $11,593 | $8,626 |
| 6 | $11,941 | $8,375 |
| 7 | $12,299 | $8,131 |
| 8 | $12,668 | $7,894 |
| 9 | $13,048 | $7,664 |
| 10 | $13,439 | $7,441 |
| 11 | $13,842 | $7,224 |
| 12 | $14,258 | $7,014 |
| 13 | $14,685 | $6,810 |
| 14 | $15,126 | $6,611 |
| 15 | $15,580 | $6,419 |
| 16 | $16,047 | $6,232 |
| 17 | $16,528 | $6,050 |
| 18 | $17,024 | $5,874 |
| 19 | $17,535 | $5,703 |
| 20 | $18,061 | $5,537 |
Insight: To simply stand still, your savings must grow at least as fast as inflation. Anything less is a real loss, even when the balance on the statement is going up.
Inflation is the rate at which prices rise over time, steadily reducing what each unit of currency can buy. This calculator shows two sides of the same coin: how much the purchasing power of a fixed amount shrinks over your time horizon, and how much more the same basket of goods will cost. It works in any currency, which matters for savers whose money is exposed to different inflation rates.
Future cost = Amount × (1 + inflation)^years
Step 1: Pick your currency and enter the amount you want to check.
Step 2: Enter an expected yearly inflation rate, e.g. 3 for 3%. It is worth trying a low, central, and high figure.
Step 3: Set how many years ahead to look, and read the real value, the future cost, and the rate-sensitivity table, updated as you type.
What Is Inflation and Purchasing Power?
Inflation is a sustained rise in the general level of prices for goods and services. When it is positive, each unit of currency buys a little less than before, and that is the erosion of purchasing power. Economists track it with a consumer price index that follows the cost of a representative basket of goods, and the yearly change in that index is the inflation rate quoted in the news.
Purchasing power is simply what your money can actually buy. Two amounts can look identical yet be worlds apart in real terms: a fixed pile of cash held for twenty years keeps the same face value but commands far fewer goods at the end. That is why a realistic plan measures money in real terms, adjusted for inflation, not by the nominal number alone.
Why Inflation Compounds Against You
Real return ≈ Nominal return − Inflation
Inflation compounds exactly like investment returns, only against you. A 3% rate does not subtract a flat amount each year; it applies to a steadily rising price level, so the loss grows over time. Over a few years the effect is modest, but across a multi-decade horizon a moderate rate can cut the real value of idle cash by a third, a half, or more.
This is the hidden cost of holding too much cash. To keep your purchasing power, money must earn at least the inflation rate; to build real wealth, it must earn more. The figure that ultimately counts is the real return, the nominal return minus inflation, because that is what actually changes how much you can buy.
Inflation, Currencies and Net Worth
For investors and expats who hold money across several currencies, inflation is not one number. Each currency has its own rate, so the real value of your holdings depends on both market performance and the inflation of the currency they sit in. A portfolio that looks steady in nominal terms can be quietly losing real value in a high-inflation currency while gaining it in a low-inflation one. Tracking net worth in real, inflation-adjusted terms across currencies gives a far truer picture of whether your wealth is actually growing.
Related Calculators
Inflation is the counterweight to growth, so it is best read next to the tools that model returns. To see how contributions and compounding build a balance over time, use the compound interest calculator, then compare that nominal growth with the purchasing power this page shows. To plan regular investing against rising prices, the savings plan (SIP) calculator helps you check whether your contributions will outpace inflation.
Frequently Asked Questions About Inflation
Inflation is a steady rise in the general level of prices, so each unit of currency buys fewer goods over time. Your money is not physically shrinking, but its purchasing power is: if prices rise 3% a year, something that costs 100 today costs about 103 next year, so the same 100 buys less. Over decades this compounds, and cash left uninvested can lose a large share of its real value.
Many long-term plans use a rate near a central bank target of around 2 to 3% a year, but real inflation varies by country and period and has been much higher at times. Rather than trust one figure, model a few scenarios, a low, central, and high rate, and check your own country's recent consumer price index for a realistic anchor.
Because what builds wealth is your real return, the return after inflation, not the headline number. An investment up 4% in a year when inflation is 3% has only grown your purchasing power by about 1%. For investors holding several currencies, inflation also differs by currency, so the real value of your money depends on both market returns and each currency's inflation rate.
No. Cash keeps the same face value but steadily loses purchasing power while prices climb, so a large cash pile is quietly shrinking in real terms. A cash buffer for emergencies is sensible, but money you will not need for years usually has to earn at least the inflation rate just to stand still.
Track Your Net Worth in Real Terms
Beating inflation is the real goal of investing. With Worthmap you can track your net worth across currencies, monitor your investments, and see whether your wealth is growing in real terms.
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