Inflation Calculator — Future Value of Money
See how inflation affects the real value of your money over time. Enter an amount, annual inflation rate, and number of years to find out what that money will be worth in the future — and how much purchasing power you'll lose.
How the Formula Works
Future Value: Amount × (1 + Rate ÷ 100)^Years
Purchasing Power Lost: Future Value − Original Amount
Example: $10,000 at 3% inflation for 10 years → Future equivalent cost = $13,439 → You need $3,439 more to buy the same things.
Frequently Asked Questions
What is inflation?
Inflation is the rate at which the general price level of goods and services rises over time, reducing purchasing power. A 3% inflation rate means $100 today buys only $97 worth of goods next year.
What is the average inflation rate?
Historically, US inflation averages around 3% per year. The Federal Reserve targets 2% as a healthy rate. Recent years have seen higher rates of 4–8%.
How does inflation affect savings?
If your savings earn less than the inflation rate, you're losing real purchasing power. A savings account at 1% during 4% inflation means you're effectively losing 3% per year.
How can I protect against inflation?
Invest in assets that historically outpace inflation: stocks, real estate, TIPS (Treasury Inflation-Protected Securities), or commodities like gold.
What is the Rule of 70?
Divide 70 by the inflation rate to estimate how many years it takes for prices to double. At 3.5% inflation, prices double in ~20 years.