Inflation Calculator
Calculate how inflation affects your money's value and purchasing power over time
Inflation Details
Inflation Analysis
Ready to Calculate
Choose a calculation mode and enter your values to analyze inflation's impact on your money.
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How to Use the Inflation Calculator
Choose Calculation Mode
Select what you want to calculate: Future Value (how much money will be worth in the future), Target Value (how much you need today to reach a future goal), or Required Inflation Rate (what inflation rate is needed to reach a target).
Enter Initial Values
Input your starting amount and the annual inflation rate (typically 2-4% for developed economies). For target value calculations, enter your desired future amount instead.
Set Time Period
Choose how many years into the future you want to analyze. Common periods are 10, 20, or 30 years for retirement planning, or shorter periods for near-term financial goals.
Review Results
The calculator shows future value, real purchasing power, total inflation impact, and year-by-year breakdown. Use the chart to visualize how inflation erodes purchasing power over time.
Plan for Inflation
Use the results to understand how inflation affects your savings and investments. Consider inflation-protected investments or higher returns to maintain purchasing power.
Understanding Inflation Impact
Inflation reduces purchasing power - $100 today will buy less in 10 years due to rising prices
Average historical inflation in the US is around 3% annually, but it varies significantly by time period
Consider inflation when planning retirement - you'll need more money to maintain the same lifestyle
Investments should aim to beat inflation - cash savings lose real value over time due to inflation
Use inflation-protected securities (TIPS) to hedge against inflation risk in your portfolio
Real return = nominal return minus inflation rate. A 5% investment return with 3% inflation gives 2% real return
Essential expenses (food, energy, healthcare) often inflate faster than average inflation rates
Fixed-rate debt becomes cheaper over time with inflation as you pay back with devalued dollars
Plan salary increases to at least match inflation to maintain your standard of living
During high inflation periods, consider accelerating major purchases before prices rise further