Inflation Calculator
See how inflation changes prices and buying power over time.
How to use the Inflation Calculator
- Enter an amount in today’s money.
- Enter the expected annual inflation rate.
- Enter the number of years to see the future cost and buying power.
Future cost = Amount × (1 + rate%)^years
About the Inflation Calculator
This calculator runs one rate in both directions. Future cost = Amount × (1 + rate)^years shows what something priced at today’s amount would cost after that many years of steady inflation. Buying power = Amount ÷ (1 + rate)^years shows the flip side: what a fixed sum of today’s money would actually be worth by then. It also reports the total price increase between the two figures.
Both numbers describe the same erosion from opposite ends, and the second is usually the one that changes decisions — money sitting at a return below inflation loses real value every year even though the balance never falls. It is why a nominal return and a real return are different things, and why a savings goal set in today’s money quietly drifts.
The caveat: this uses a single average rate that you supply, compounded evenly, and real inflation does not behave that way. It runs hot in some years and near zero in others, so any single average is a simplification. Your personal inflation rate also differs from any published index, because an index tracks a representative basket while you buy your own — rent, energy and food can move very differently from the headline figure. Compare it against nominal growth in the compound interest calculator.
Frequently asked questions
What inflation rate should I use?
Your own estimate, or published figures from your national statistics office for your country and period. This tool deliberately does not pick a rate for you: inflation varies by country and by era, and a past average is not a prediction of the future.
What is the difference between future cost and buying power?
Future cost answers "what will this thing cost me later" — the number goes up. Buying power answers "what will this money be worth later" — the number goes down. They are the same calculation, one multiplying by (1 + rate)^years and the other dividing by it.
Is this based on real CPI data?
No. It is not connected to any index or historical dataset. It compounds the flat rate you type in, evenly, for the number of years you give. That makes it a clean illustration of the mechanism rather than a record of what actually happened.
Why does inflation feel higher than the official number?
Because published indices measure a representative basket across a whole economy, and nobody buys that basket. If a big share of your spending goes on categories rising faster than average, your personal rate is higher than the headline — and vice versa.
How does inflation affect my savings?
If your savings grow more slowly than prices rise, the balance increases while what it can buy shrinks — that is the gap between a nominal return and a real return. Running the same amount through this calculator and the compound interest calculator shows both sides side by side.