🎈 Inflation Calculator

See how inflation changes the value of money over time.

About this tool

Projects how much a given amount of money will cost in the future at a chosen constant annual inflation rate, and separately shows what today's amount was equivalent to that many years in the past — using the standard compound growth formula applied to prices instead of investments.

A constant inflation rate is a simplification; real inflation varies year to year, but a steady assumed rate is the standard way to illustrate the long-run effect.

Worked example

At 3% annual inflation, something costing $1,000 today will cost about $1,344 in 10 years — and $1,000 today was equivalent to about $744 ten years ago.

How to use it

Enter an amount.
Enter an assumed annual inflation rate.
Enter the number of years to project.
Press Calculate to see both the future cost and the past equivalent value.

Tips

A commonly cited long-run inflation target in many economies is around 2–3% annually — but actual rates fluctuate and have been notably higher in some recent years.
Use this alongside the Investment Calculator to see whether a projected investment return actually outpaces inflation in real terms.
This models a constant rate; for a rough estimate over irregular periods, use an average rate across the years in question.

FAQ

What inflation rate should I use?

There's no single right answer — you can use a historical average for your country, a current reported rate, or a rate a specific forecast assumes; the tool doesn't assume one for you.

What does "past equivalent value" mean?

It answers: if $1,000 today has a certain purchasing power, what smaller amount of money had that same purchasing power N years ago, given the chosen inflation rate.

Is 3% a realistic long-term average?

It's a commonly used illustrative figure close to many countries' long-run averages, but actual inflation varies by country, year, and economic conditions — check current data for your specific situation.

From the blog: getting the most out of this tool

The specific number people usually want from this tool isn't the future cost — it's the gut-check of realizing that a comfortable amount of savings today quietly buys noticeably less a decade or two from now if it just sits in cash.

We paired it with a past-value view too, since "what would this be worth in today's money" is just as common a question as "what will this cost in the future," and both use the same underlying formula run in opposite directions.