Year-by-Year Impact
| Year | Purchasing Power | Loss | Cumulative Loss |
|---|
Inflation Calculator — Calculate Purchasing Power Over Time
Inflation is the silent tax on your savings — it erodes the purchasing power of money over time. Our Inflation Calculator shows you exactly how much value your money loses to inflation over any time period. Whether you're planning for retirement, evaluating salary offers, or just curious about the true value of your savings, this tool provides crucial insights.
Enter any amount and see what it will be "worth" in the future in today's dollars. The calculator also shows you how much money you'd need in the future to maintain the same purchasing power, and includes a year-by-year breakdown so you can see the cumulative impact of inflation.
The Inflation Formula
How to Use the Inflation Calculator
- Enter the present amountType any amount of money you want to evaluate (e.g., $10,000).
- Set the inflation rateUse the preset buttons for common rates or enter your own. US historical average is ~3%.
- Choose the time periodEnter how many years into the future you want to project.
- Optional: Annual income increaseEnter expected salary growth to see if your income keeps pace with inflation.
- Click CalculateSee the future purchasing power, loss amount, and a year-by-year breakdown.
Frequently Asked Questions
Inflation is the rate at which prices increase over time, reducing the purchasing power of money. At 3% inflation, $100 today buys what $74 buys in 10 years. It matters because it affects your savings, investments, salary, and cost of living. Understanding inflation helps you make better financial decisions.
Strategies to beat inflation: 1) Invest in stocks (historically return 7-10% annually), 2) Real estate (property values and rents tend to rise with inflation), 3) Treasury Inflation-Protected Securities (TIPS), 4) Commodities, 5) High-yield savings accounts (when rates exceed inflation). Cash under your mattress loses value every year.
The US has averaged about 3% annual inflation over the long term. However, it varies significantly: it was near 0% in 2020, spiked to 9%+ in 2022, and has since cooled. The Federal Reserve targets 2% as ideal. Your personal inflation rate may differ based on your spending patterns.
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