Inflation Calculator
Calculate the future value of money adjusted for inflation, or find the real value of a past amount in today's dollars.
Did this tool work for you?
How to use this calculator
Compound the inflation rate over the number of years to find how much purchasing power changes.
- 1
Enter the amount you want to evaluate.
- 2
Enter the expected or historical annual inflation rate.
- 3
Enter the number of years.
- 4
See how much purchasing power changes and what the equivalent future amount is.
Frequently asked questions
What is the average inflation rate?
Long-run average CPI inflation in the US has been about 3.1% annually since 1913. The UK averages ~3.3%. Germany ~2.5%. Developed-world central banks typically target 2% inflation. The 2021–2023 period saw unusually high inflation of 6–9% in many countries.
How does inflation affect savings?
If your savings earn less than the inflation rate, your real purchasing power declines. At 3% inflation, money under a mattress loses half its real value in 24 years. A savings account earning 4% when inflation is 3% earns a 1% real return.
What is the Rule of 70 for inflation?
Divide 70 by the inflation rate to estimate how many years it takes for prices to double. At 3.5% inflation: 70 / 3.5 = 20 years. At 7% inflation: 70 / 7 = 10 years. This is useful for quickly visualising the erosion of purchasing power.
How is inflation measured?
Most countries use a Consumer Price Index (CPI) based on a basket of goods and services representative of typical household spending. Core CPI excludes food and energy (which are volatile). PCE (Personal Consumption Expenditures) is the US Federal Reserve's preferred measure.
Inflation and purchasing power explained
How to use the inflation
Use this inflation to he future value of money adjusted for inflation, or find the real value of a past amount in today\. Enter your values above and get your result in seconds. The tool is free, works on all devices, and keeps your data private — nothing is stored or shared.
How the inflation works
The inflation calculator uses standard formulas used in financial planning, budgeting, and investment decisions. Enter your inputs, and the tool calculates the result instantly in your browser. No server-side processing means your data stays on your device. Results update in real time as you change inputs.
How inflation erodes wealth
At 3% annual inflation, $10,000 today requires $18,061 in 20 years to buy the same goods — a 81% increase in nominal cost. Savings that earn below the inflation rate lose purchasing power silently each year. This is why long-term financial planning must account for inflation.
Inflation and investment returns
A 7% investment return sounds great until inflation is 4% — the real return is only 3%. The Fisher equation states: real return ≈ nominal return − inflation rate. Always compare investment returns against inflation when evaluating long-term performance.
Protecting against inflation
Assets that historically hedge against inflation include: equities (companies can raise prices), real estate (values and rents tend to rise with inflation), commodities (especially gold), and inflation-linked bonds (TIPS in the US, index-linked gilts in the UK). Cash and fixed-rate bonds are the worst inflation hedges.
Inflation: how it works
This free tool helps you plan and compare financial scenarios in seconds. Enter your figures, adjust the assumptions, and instantly see how different inputs affect the outcome — ideal for budgeting, benchmarking, and data-driven decision-making.
Who uses this tool?
Financial planners, accountants, students, and individuals use it to model scenarios before committing to major financial decisions. It is equally useful for quick sanity checks and detailed what-if analyses.
Learn more from an authoritative source:
InvestopediaCompound Interest Calculator
Calculate how your investment or savings grows over time with the power of compounding.
Simple Interest Calculator
Calculate simple interest, total amount, and interest earned using principal, rate, and time.
ROI Calculator
Calculate return on investment, net profit, and annualised ROI for any investment.
CAGR Calculator
Calculate Compound Annual Growth Rate (CAGR) for investments, revenue, or any metric over time.
Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →