Inflation Calculator
Calculate how inflation affects the purchasing power of money over time. See how much your money will be worth in the future.
Inflation Calculator
Understanding Inflation
Inflation is the rate at which the general level of prices for goods and services rises, causing purchasing power to fall. Over time, inflation reduces the value of money, meaning you can buy less with the same amount of money.
How Inflation Affects Your Money
Purchasing Power
As inflation increases, the purchasing power of your money decreases. For example, if inflation is 2% per year, $100 today will have the purchasing power of about $98 next year.
Future Value
The nominal value of money may increase over time, but its real value (purchasing power) may decrease. This calculator shows both the nominal future value and the real purchasing power.
Common Inflation Rates
| Time Period | Average Annual Inflation Rate | Notes |
|---|---|---|
| 2020-2023 | 4.7% | Recent period with higher inflation |
| 2010-2019 | 1.8% | Relatively stable period |
| 2000-2009 | 2.5% | Moderate inflation |
| 1990-1999 | 3.0% | Moderate inflation |
| 1980-1989 | 5.1% | High inflation period |
| 1970-1979 | 7.1% | Very high inflation period |
Inflation Formula
Future Value = Initial Amount × (1 + Inflation Rate)^Years
Where Inflation Rate is expressed as a decimal (e.g., 0.025 for 2.5%)
Note:
This calculator provides estimates based on the information you enter. Actual inflation rates vary over time and by location. For financial planning, consider consulting with a financial advisor.