EachCalculatorInflation Calculator
See how inflation erodes purchasing power over time — find out what an amount today will need to grow to in the future, or what a future amount is really worth in today's dollars.
Mode
Future Equivalent
$134.39
34.39% purchasing power lost
How It Works
Future equivalent
To find out what a purchase costing a certain amount today will cost in the future, the amount is compounded forward by the average annual inflation rate over the number of years.
Present value
To find out what a future (or past) amount is worth in today's purchasing power, the amount is discounted backward by the same inflation rate.
Example Calculation
At 3% average annual inflation, something that costs $100 today would cost about $134 in 10 years — a 34% loss of purchasing power for the same dollar amount.
Common Mistakes
- Using a single flat rate for very long time horizons, when real inflation varies significantly year to year.
- Confusing 'future equivalent' (what you'd need to spend later) with 'present value' (what a future amount is worth now) — they go in opposite directions.
Frequently Asked Questions
- What inflation rate should I use?
- A commonly cited long-run average is around 2-3% annually in many developed economies, but actual inflation varies significantly by year and country — use this as a planning estimate, not a forecast.
- How is this different from the Investment Calculator?
- The Investment Calculator projects growth from contributions and a return rate. This calculator instead shows how a rate (inflation) erodes the purchasing power of a fixed amount over time — no contributions involved.