Inflation Calculator
How inflation changes the value of money over time
Curious what your money will be worth later — or what something will cost? Enter an amount, an inflation rate and a number of years to see the effect of inflation.
Why money loses value
Inflation means prices rise over time, so each dollar buys a little less. At 3% inflation, something that costs $1,000 today will cost about $1,344 in ten years — and $1,000 sitting in cash will only buy about $744 worth of today's goods. That's why long-term savings usually need to be invested to outpace inflation.
Nominal vs. real
A "nominal" figure is the dollar amount on the price tag or statement; the "real" figure adjusts for inflation to reflect actual buying power. A savings account paying 2% while inflation runs 3% is losing about 1% in real terms each year, even though the balance technically grows. Always compare a return to the inflation rate, not to zero.
Two ways to use this
Run it forward to estimate what a future expense — college, a car, retirement spending — will cost in tomorrow's dollars, so you can save enough. Run it as a buying-power check to see how much a fixed amount of cash erodes over time. Either way, it's a reminder that money left idle quietly shrinks.
Inflation Calculator: frequently asked questions
What is a normal inflation rate?
Many central banks target around 2% per year. Actual rates vary and have spiked higher in some periods.
How does inflation affect savings?
Cash earning less than the inflation rate loses purchasing power over time, even though the dollar amount on the statement doesn't shrink.
How do I protect my savings from inflation?
Holding more than a short-term cushion in cash loses purchasing power when inflation outpaces your interest rate. Money you won't need for years is usually invested in assets that have historically outpaced inflation — though those carry risk.