Calculators
Inflation Calculator
Calculate inflation impact on purchasing power over time. Free inflation calculator shows how much money will be worth in the future with historical and projected inflation rates.
Use Inflation Calculator to get instant results without uploads or sign-ups. Everything runs securely in your browser for fast, reliable output.
Your results will appear here.
About this tool
Understand how inflation erodes purchasing power over time with our comprehensive inflation calculator. Inflation reduces the real value of money - $100 today buys more than $100 will buy in 10 years. Our calculator shows exactly how much purchasing power you'll lose to inflation and what future amount equals today's dollars, crucial for retirement planning, investment decisions, and long-term financial goals.
Inflation is the gradual increase in prices and decrease in the value of money. The US Federal Reserve targets 2% annual inflation, but actual rates vary - recent years saw 3-8% inflation. Even "low" 3% inflation cuts purchasing power in half over 24 years. Our calculator uses historical US inflation data (averaging 3.2% since 1913) or lets you enter custom rates for various scenarios.
Perfect for retirement planning (will my savings be enough in 30 years?), evaluating investment returns (6% returns minus 3% inflation = 3% real growth), salary negotiations (asking for raises that beat inflation), and understanding why today's dollars are more valuable than future dollars. See exactly how much you need to save or earn to maintain purchasing power.
Your financial information stays completely private - all calculations happen in your browser with no data sent to servers. Use the calculator to model different inflation scenarios and time periods. Works on all devices and can be used offline after the first visit.
Usage examples
Retirement Planning
Will $50,000/year be enough in 30 years at 3% inflation?
Future equivalent: $121,363/year needed. $50,000 in 30 years has purchasing power of only $20,599 today. You need 2.4× more to maintain lifestyle.
Investment Real Returns
7% investment return vs 3% inflation over 20 years
$10,000 grows to $38,697 at 7%. But inflation makes that worth only $21,454 in today's dollars. Real return: 4% annually after inflation.
College Savings Goal
College costs $30,000/year now, child starts in 15 years
At 5% education inflation: $62,368/year needed. Total 4-year cost: $249,472. Without adjustment, you'll be $130k short. Start saving now.
Salary Raises vs Inflation
$60,000 salary, 2% annual raise vs 3% inflation over 10 years
Salary grows to $73,157, but purchasing power drops to equivalent of $54,517 today. Lost 9% real income despite "raises." Need 3% raises to break even.
Historical Comparison
What $100 in 1980 equals today
Average 3.3% inflation since 1980: $100 then = $360 now. Items costing $100 in 1980 cost $360+ today. Housing, healthcare saw even higher inflation.
How to use
- Enter the current dollar amount you want to calculate
- Enter the number of years in the future (or past)
- Enter the expected annual inflation rate (US average: 3.0-3.5%)
- Click "Run Tool" to calculate future purchasing power
- View future value, equivalent purchasing power, and loss due to inflation
- See year-by-year breakdown of inflation impact
Benefits
- Calculate future value and purchasing power with inflation
- Understand real value of money over time
- Plan for retirement with inflation-adjusted goals
- Evaluate investment returns after inflation
- Compare salary growth to inflation rates
- Set realistic savings targets for future expenses
- Model different inflation scenarios (low, average, high)
- See year-by-year inflation impact breakdown
- Use historical US inflation rates or custom rates
- No registration or personal information required
- 100% private - calculations done in your browser
- Free forever with instant calculations
FAQs
What is inflation and how does it affect purchasing power?
Inflation is the rate at which the general price level of goods and services increases over time, causing the purchasing power of money to decrease. If inflation is 3%, something that costs $100 today will cost $103 next year. Over time, this compounds - at 3% inflation, prices double every 24 years. Your $50,000 salary buys less each year unless it increases faster than inflation.
What is the average inflation rate in the US?
The US has averaged about 3.2% annual inflation since 1913 when the Federal Reserve began. Recent decades varied: 1970s-early 1980s saw 7-13% inflation, 1990s-2010s averaged 2-3%, 2021-2023 saw 4-8% inflation. The Federal Reserve targets 2% as optimal for economic growth. Use 2-3% for conservative estimates, 3-4% for moderate, or historical specific periods for accuracy.
How much will $1 million be worth in 30 years?
At 3% inflation, $1 million in 30 years has the purchasing power of $412,000 today - it loses 58.8% of its value. At 4% inflation, it's worth only $308,000 today - a 69.2% loss. This is why retirement planning must account for inflation. If you need $50,000/year today, plan for $121,000/year in 30 years at 3% inflation to maintain the same lifestyle.
How do I calculate inflation-adjusted returns?
Real return = Investment return - Inflation rate. If your investments earn 7% but inflation is 3%, your real return is 4%. Use the formula: Real Value = Nominal Value ÷ (1 + inflation)^years. A $10,000 investment growing to $20,000 over 10 years at 7% is actually worth $14,877 in today's dollars at 3% inflation - still good, but not double.
Why do my salary raises not feel like raises?
If your raises don't exceed inflation, you're actually losing purchasing power. A 2% raise with 3% inflation means a real pay cut of 1%. Over 10 years, this compounds significantly. A $60,000 salary with 2% raises grows to $73,157, but with 3% inflation, that equals only $54,517 in today's purchasing power - a 9% real income loss. Negotiate raises above inflation to gain real income growth.
How much do I need to save for retirement with inflation?
Multiply your current annual needs by the inflation factor for your years until retirement. If you need $50,000/year now and retire in 25 years, you'll need $104,689/year at 3% inflation. For a 30-year retirement, that's $3.14 million total (increasing annually for inflation during retirement). Use 4% withdrawal rule: need $2.6 million at retirement to generate $104,689 first year.
Which expenses have higher inflation than average?
Healthcare, education, and housing often exceed general inflation. Healthcare averaged 4-6% annually, college costs 5-8%, housing 3-5% in recent decades. Food and energy are volatile - sometimes exceeding 10%, other times deflating. For retirement planning, use higher rates for healthcare (5-6%). For college savings, use 5-6%. This is why these costs feel increasingly unaffordable - they outpace wage growth.
Can inflation ever be negative (deflation)?
Yes, deflation (negative inflation) means prices decrease and money gains purchasing power. While this sounds good, deflation often indicates economic problems - people delay purchases waiting for lower prices, hurting businesses. The Great Depression saw deflation. Modern central banks avoid deflation through monetary policy. Japan struggled with deflation for decades. The US rarely sees deflation except brief periods like 2009 and some months in 2020.
How does inflation affect fixed-rate mortgages and loans?
Inflation helps borrowers with fixed-rate debt because you repay loans with money that's worth less over time. A $300,000 30-year mortgage at $2,000/month: that payment feels easier in year 20 due to inflation - your salary increased but payment stayed fixed. This is why fixed-rate mortgages are popular - you lock in today's dollars for tomorrow's payments. Variable rates lose this advantage.
What investments protect against inflation?
Real estate, stocks, commodities, I Bonds, and TIPS (Treasury Inflation-Protected Securities) historically outpace inflation. Stocks average 10% returns vs 3% inflation = 7% real return. Real estate appreciates and rents increase with inflation. I Bonds pay inflation rate + fixed rate. Cash and fixed-rate bonds lose to inflation - earning 1% in savings while inflation is 3% means losing 2% purchasing power annually. Diversify to hedge inflation.
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