Financial Calculators
Inflation Calculator
Estimate how a constant inflation rate changes future prices or the purchasing power of a fixed amount. You can also convert a later amount into today’s money.
Estimate the effect of inflation
Inflation Calculator
Explore future costs and purchasing power using an inflation assumption you choose.
Planning results
How this calculator works
Future cost = amount × (1 + annual inflation rate)^years. Purchasing power and reverse inflation = amount ÷ that factor. Months are divided by 12. Deflation is supported down to −50% annually; projections are limited to 100 years. Purchasing power expresses what a fixed future sum buys in today's money. Historical CPI data is not included; this tool does not look up or update inflation rates.
Results are estimates for planning purposes only and do not constitute financial, investment, tax, lending, or legal advice.
Your calculation is processed in your browser and is not stored by this tool.
This calculator applies the annual inflation rate you enter. It does not retrieve official inflation data or predict future price changes.
How to use the inflation calculator
- 1
Choose Future Cost, Purchasing Power or Today’s Money.
- 2
Enter the starting amount.
- 3
Enter an annual inflation rate based on the scenario you want to test.
- 4
Set the time in years and months.
- 5
Review the ending value, total change and year-by-year table.
How inflation calculations work
Future Cost compounds the amount by the entered annual rate over the selected time. Purchasing Power divides the fixed amount by the same inflation factor to estimate what it could buy later. Today’s Money reverses the calculation to express a future amount in current-value terms.
For example, future cost uses the relationship future value = amount × (1 + rate)time. Because the rate compounds, a 3% annual increase over ten years is more than a simple 30% addition.
Inflation example
If an item costs $100 today and prices rise at a constant 3% per year, its estimated cost after ten years is $134.39. A fixed $100 held for the same period would then have purchasing power equivalent to about $74.41 today.
Future cost versus purchasing power
These two views answer different questions. Future cost asks how much money may be required later to buy an item that has a known price today. Purchasing power asks what an unchanged amount of money may be able to buy later. Today’s Money is useful when a future figure needs to be understood in current-value terms.
Choosing an inflation rate
Inflation differs by country, period and category. Housing, education, food, healthcare and energy may not move at the headline national rate. For historical comparisons, obtain official consumer-price data for the correct jurisdiction and dates, then use an appropriate calculated rate. For planning, test several rates instead of treating one assumption as certain.
Important limitations
- No historical lookup: the tool has no CPI database and does not identify rates by year, country or currency.
- Constant rate: one annual rate is assumed across the full period.
- Currency neutral: the arithmetic works with any currency but does not convert exchange rates.
- Personal inflation: your spending mix may change at a different rate from a published index.
- Forecasting: the result is a scenario, not a prediction or investment recommendation.
Related tools
Inflation Calculator FAQ
What does an inflation calculator show?
It estimates future cost, future purchasing power or the current equivalent of a later amount using an entered rate.
Does this use official CPI data?
No. You supply the annual rate, so use an official source when a historical comparison is required.
How does inflation reduce purchasing power?
When prices rise, the same fixed amount buys fewer goods and services.
Can I use any currency?
Yes for the arithmetic, but the tool does not convert currencies or select a country-specific rate.
Can the inflation rate be negative?
Yes within the supported input range; a negative rate represents a deflation scenario.
Does the result predict future inflation?
No. It compounds the constant rate you enter and does not forecast economic conditions.
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