Inflation Calculator
See how inflation erodes purchasing power with a year-by-year table from any start year.
Before you calculate
Uses your constant inflation assumption, not historical CPI data or a forecast. Personal spending inflation can differ from a broad price index.
How Inflation Erodes Purchasing Power
Inflation means the same dollar buys less over time. The future value formula shows what a present-day amount will cost in the future, while the purchasing power calculation shows what your money will actually buy.
Future Value = Amount × (1 + Rate)^Years | Purchasing Power = Amount / (1 + Rate)^YearsExample Scenarios
Inflation Impact on $10,000 Savings
At 3% annual inflation, $10,000 in savings loses about 26% of its purchasing power in 10 years — it will only buy what $7,441 buys today if left in a non-interest-bearing account. This highlights the importance of investing savings.
Retirement Planning and Inflation
If you plan to need $50,000/year in retirement 30 years from now, you'll actually need about $121,000/year at 3% inflation. Factoring inflation into retirement savings targets is essential to maintain your lifestyle.
Methodology & Assumptions
Future cost is calculated as Amount × (1 + inflationRate/100)^years. Purchasing power per year is Amount / (1 + inflationRate/100)^year. The percent loss reflects what portion of the future cost is attributable to inflation.
Sources & calculation notes
Maintained by MoneyCalc. Results are estimates based on the inputs and assumptions shown, not personalized financial advice or a lender quote. Default rates are examples unless a specific tax year or official table is identified.
References explain the underlying concepts or rules. They do not endorse or independently certify this implementation.
Calculations run in your browser. Some tools retain settings on this device. Displayed rounding can produce small differences from a statement or contract.