Inflation Calculator
See how inflation changes the purchasing power of money between two years.
Result
Cumulative Inflation
Year-by-Year Value
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How Inflation Affects Money
Inflation is the gradual rise in the general level of prices over time. As prices rise, each unit of currency buys fewer goods and services, so the same amount of money loses purchasing power. This calculator shows two perspectives: the future cost of an amount (how much you would need in the future to buy what it buys today) and the purchasing power of today’s money (what a fixed amount would really be worth after years of inflation).
Compounding Inflation
Inflation compounds year after year, much like compound interest. The growth factor over a period is (1 + rate)^years. The future cost of an amount is amount × factor, while the real purchasing power of today’s money is amount ÷ factor. At 3% annual inflation, prices roughly double in about 24 years.
A Note on Assumptions
This tool uses a single, constant assumed inflation rate for every year. Real-world inflation varies and is measured by indexes such as the Consumer Price Index (CPI). These results are projections based on your chosen rate, not historical CPI data, and should be used for illustration only.
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Disclaimer: This calculator provides estimates for educational purposes only and assumes a constant inflation rate. It does not reflect actual historical CPI data, taxes, or changes in spending patterns. Consult with a qualified financial advisor before making financial decisions.