25 · Calculators

Inflation Calculator

Pick an amount, an average inflation rate and a number of years to see the future price and the loss in buying power.

Future cost

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How to use the inflation calculator

  1. Enter an amount in today’s money.
  2. Enter an average yearly inflation rate.
  3. Enter the number of years.

How inflation compounds

Prices rise on top of last year’s prices, so inflation compounds: the future cost is amount × (1 + rate)years. At 3% a year, prices roughly double every 24 years.

Choosing a rate

Many central banks target about 2% a year, and long-run averages in many countries are around 2–4%. Real inflation varies year to year, so treat the result as an estimate rather than a forecast.

Examples

100 at 3% for 10 years

134.39 · buying power 74.41

50,000 at 2% for 20 years

74,297.37

Questions

Does it use official inflation data?

No. It uses the average rate you enter, so it works for any country and any period.

What does buying power mean?

It’s what your money would buy in today’s terms after inflation. 100 today buys only 74.41 worth of today’s goods after 10 years at 3%.

Can I enter deflation?

Yes. Enter a negative rate, such as −1.