Inflation Calculator
What inflation does to prices and purchasing power.
Inflation Calculator
Project what an amount will cost later, and what a future amount is worth in today's money.
A price today, or a future sum you want to deflate.
Central-bank targets are commonly 2-3%; use the long-run average you actually expect.
Between 0 and 100.
Future cost of the same basket
1,343.92
After 10 years at 3% a year
- Purchasing power in today's money
- 744.09
- Cumulative inflation
- 34.39%
- Real change in buying power
- -25.59%
Prices rising 34.39% and money losing 25.59% of its buying power are the same change measured from opposite ends.
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What This Calculator Does
The Inflation Calculator projects a price forward and pulls purchasing power backward at a constant annual rate. It answers two different questions with the same arithmetic: what something will cost later, and what a future sum is really worth today.
How It Works
Inflation compounds, so the multiplier is one plus the annual rate raised to the number of years. Multiplying an amount by that factor gives the future cost of the same basket. Dividing by it gives the present value of a future amount — what it buys in today’s money. The tool also reports cumulative inflation and the real percentage change in purchasing power.
Example
At 3% inflation, 1,000 of spending today costs about 1,343.92 in ten years. Put the other way, 1,000 received in ten years buys only about 744.09 worth of today’s goods — a real fall of 25.59%. The gap between +34.39% and −25.59% is the same inflation seen from two directions.
Formula
Future = Amount × (1 + rate)^yearsToday’s value = Amount / (1 + rate)^yearsCumulative % = ((1 + rate)^years − 1) × 100Reading the Results
Future cost
What the same goods or services would cost after the chosen number of years at a constant rate. Real inflation rarely moves in a straight line.
Purchasing power
What a future sum is worth in today’s money. It is the figure to compare against a future salary or pension.
Sources and References
OECD — Consumer Price Index data
Annual CPI inflation rates by country
CPI measures a representative basket and is the usual basis for headline inflation.
IMF — Inflation: Prices on the Rise
Compounding effect of sustained inflation
Explains why even low rates erode purchasing power substantially over decades.
References identify the method or data behind this calculator. Where a standard or tariff changes, the current edition applies, and the assumptions stated above take precedence over a remembered figure.
Frequently Asked Questions
What inflation rate should I use?
Use your central bank’s target or the long-run CPI average for your country, typically 2–3% in developed economies. For personal planning, use the inflation rate you actually experience, which may be higher if housing or food dominates your spending.
Why does purchasing power fall faster than prices rise?
They are the same change measured from opposite ends. Prices rising 34.39% means money loses 25.59% of its buying power, because the new price is the reference point. The percentages differ, but the underlying factor is identical.
Does this show real wage growth?
Not directly, but you can use it to. Convert a future salary to today’s money with the purchasing-power figure, then compare it with your current salary. If the real figure is lower, your pay is not keeping up.
Is a constant inflation rate realistic?
No. Real inflation moves with energy prices, supply shocks, and policy. A constant rate is a planning assumption, not a forecast. Run a low and a high case to see the range.