Inflation Calculator
Free inflation calculator. See how inflation erodes purchasing power over time. Calculate future equivalent values and real returns.
$
years
%
$744.09
in 10 years
$255.91
-25.59%
$1,343.92
needed for same buying power
$30.00
per year at 3%
What This Means
$1,000.00 today will only buy $744.09 worth of goods in 10 years at 3% annual inflation. To maintain the same purchasing power, you would need $1,343.92.
Year-by-Year Projection
| Year | Purchasing Power | Loss | Equivalent Needed |
|---|---|---|---|
| 1 | $970.87 | -2.91% | $1,030.00 |
| 2 | $942.60 | -5.74% | $1,060.90 |
| 3 | $915.14 | -8.49% | $1,092.73 |
| 4 | $888.49 | -11.15% | $1,125.51 |
| 5 | $862.61 | -13.74% | $1,159.27 |
| 6 | $837.48 | -16.25% | $1,194.05 |
| 7 | $813.09 | -18.69% | $1,229.87 |
| 8 | $789.41 | -21.06% | $1,266.77 |
| 9 | $766.42 | -23.36% | $1,304.77 |
| 10 | $744.09 | -25.59% | $1,343.92 |
Inflation Scenarios (10 years)
| Scenario | Rate | Purchasing Power | Value Lost |
|---|---|---|---|
| Low Inflation | 2% | $820.35 | -$179.65 |
| Moderate Inflation | 3% | $744.09 | -$255.91 |
| High Inflation | 5% | $613.91 | -$386.09 |
| Very High Inflation | 8% | $463.19 | -$536.81 |
| Hyperinflation | 15% | $247.18 | -$752.82 |
Inflation Formulas
Future Value: FV = PV × (1 + r)ⁿ
Purchasing Power: PP = PV / (1 + r)ⁿ
Real Return: (1 + nominal) / (1 + inflation) - 1
Where PV = present value, r = inflation rate, n = years
Beating Inflation
- Invest in assets that historically outpace inflation (stocks, real estate)
- Consider Treasury Inflation-Protected Securities (TIPS)
- Avoid keeping large amounts in low-yield savings accounts
- Factor inflation into retirement planning calculations
- Review and adjust investment strategies regularly
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Last updated: January 2026
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Frequently Asked Questions
How is inflation measured?
Inflation is typically measured by the Consumer Price Index (CPI), which tracks price changes in a basket of goods and services including housing, food, transportation, and healthcare. The Bureau of Labor Statistics calculates CPI monthly. Core inflation excludes volatile food and energy prices for a more stable measure.
What is a good inflation rate?
Most economists and central banks target 2% annual inflation as healthy. This rate encourages spending and investment without eroding purchasing power too quickly. Below 2% risks deflation (falling prices), which can harm economic growth. Above 4-5% for extended periods is considered problematic.
How does inflation affect my savings?
Inflation reduces purchasing power over time. If inflation is 3% and your savings earn 1%, you're losing 2% in real terms annually. After 10 years at 3% inflation, $10,000 has the buying power of only $7,441. This is why keeping large amounts in low-yield accounts can hurt your wealth.
What investments beat inflation?
Historically, stocks return 7-10% annually, outpacing inflation. Real estate often appreciates with inflation. Treasury Inflation-Protected Securities (TIPS) adjust with CPI. I Bonds offer inflation protection up to $10,000/year. High-yield savings accounts and CDs may keep pace with moderate inflation.
How much will $100 be worth in 20 years?
At 3% annual inflation: $100 today will have the purchasing power of about $55 in 20 years. At 2% inflation: about $67. At 4% inflation: about $46. To maintain purchasing power, $100 today would need to grow to $181 at 3% inflation over 20 years.