Calculate the future value of money and purchasing power with inflation. Free inflation calculator with formula, examples, and FAQ.
Inflation erodes the purchasing power of money over time — a dollar today buys more than a dollar in the future. The inflation calculator helps you understand how much goods will cost in the future and how much your current money will be worth in real terms. This is essential for long-term financial planning, retirement savings, and investment decisions.
Future Cost = Current Amount × (1 + Inflation Rate)^Years | Purchasing Power = Current Amount / (1 + Inflation Rate)^YearsThe future cost formula shows how much you will need to maintain the same standard of living. The purchasing power formula shows the real value of your current money in future terms. Both use compound inflation, reflecting that inflation compounds just like interest does.
| Input | Output |
|---|---|
| $1,000 at 3% inflation for 10 years | Future Cost: $1,343.92, Purchasing Power: $744.09 (74.41%) |
| $50,000 at 4% inflation for 20 years | Future Cost: $109,556.15, Purchasing Power: $22,819.34 (45.64%) |
| $5,000 at 5% inflation for 15 years | Future Cost: $10,394.64, Purchasing Power: $2,406.06 (48.12%) |