📉 Inflation Calculator
Enter an amount, an average inflation rate and a number of years to see its real (purchasing-power) value and how much you'd need to keep pace.
Real value (today's money)
5,536.76
Purchasing power lost
44.6%
Needed to keep pace
18,061.11
Inflation erodes what money can buy: the real value after N years is amount ÷ (1 + rate)ᴺ. At 3% a year, money loses about a quarter of its purchasing power over 10 years and nearly half over 20. The "needed to keep pace" figure is the future amount that would buy the same as your amount does today. Uses the rate you enter — no fixed CPI table. Educational, not financial advice. 🔒 In your browser.
How the inflation calculator works
Inflation reduces what a fixed amount of money can buy. The real (inflation-adjusted) value after N years is amount ÷ (1 + rate)ᴺ, using the average annual inflation rate you enter. The tool also shows the percentage of purchasing power lost, and the future amount that would buy the same as your amount does today (amount × (1 + rate)ᴺ).
You supply the rate, so there's no fixed price-index table to go out of date — pick a figure (long-run inflation has often averaged around 2–3% in many economies) or model a scenario. This is a compounding calculation, not a forecast, and it's educational rather than financial advice.
Frequently asked questions
How do you calculate the effect of inflation?
Divide the amount by (1 + inflation rate) raised to the number of years: real value = amount ÷ (1 + r)ᴺ. At 3% for 10 years, $1,000 is worth about $744 in today's money.
How much value does money lose to inflation?
At 3% a year, money loses roughly a quarter of its purchasing power over 10 years and nearly half over 20. Higher rates erode it faster — the effect compounds.
What inflation rate should I use?
For long-run planning, many people use around 2–3%, close to central-bank targets and long historical averages, but you can enter any rate to model a specific scenario. The tool uses whatever you provide.
What is the difference between nominal and real value?
Nominal value is the face amount of money; real value is what it can actually buy, adjusted for inflation. Inflation calculations convert between them.
How much will I need to keep the same purchasing power?
Multiply by (1 + rate)ᴺ: to match what $10,000 buys today after 20 years at 3%, you'd need about $18,061. The tool shows this "needed to keep pace" figure.
Educational information, not financial advice. These calculators use standard formulas with the figures you enter; results are illustrations, not guarantees. For decisions about your money, consult a qualified, regulated financial professional.