Inflation Calculator
See how inflation changes the value of money over time and what a sum will be worth in future.
Last reviewed July 1, 2026
Inflation quietly erodes cash. $1,000 kept under the mattress for 20 years would buy only $554worth of today's goods.
Inflation means the same goods cost more over time, so a fixed amount of money buys less each year. This calculator shows two sides of that: what something costing a set amount today will cost in future, and how much today's money will actually be worth down the line.
It's a simple but eye-opening tool for planning — especially for long-term goals like retirement, where decades of even modest inflation dramatically change the numbers.
Why inflation matters for savers
Cash sitting in a low-interest account loses real value when inflation outpaces the interest it earns. That's why keeping too much in cash over long periods quietly costs you buying power, and why many people invest for long-term goals instead.
The formula is future cost = amount × (1 + rate)^years, compounding each year just like interest — only working against you rather than for you.
Frequently asked questions
▶What inflation rate should I use?
Many economies target around 2–3% a year. For long-term planning, a rate in that range is a reasonable default, though actual inflation varies year to year.
▶How does inflation affect my savings?
If your savings earn less than the inflation rate, their real value falls over time. To preserve buying power, your return needs to at least match inflation.
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Open calculator →Disclaimer: Inflation Calculator results are estimates for general information and education only, and are not financial, tax, legal or medical advice. Verify important decisions with a qualified professional.