WiseCalcs

Inflation calculator

Enter an amount today, the annual inflation rate, and the number of years. The calculator shows what that amount will cost in the future and how much of its purchasing power it keeps, as you type.

Use it to find how much more the same things will cost after inflation, and how much of today's money's value is left in the future.

USD
%
Use an official historical rate

Future cost

$1,343.92

Retained Lost
Future purchasing power
$744.09
Purchasing power lost
$255.91

The result updates as you type. The bar splits today's amount into the purchasing power it retains and the part lost to inflation.

How does it work?

Future purchasing power is the amount divided by the same factor: PV ÷ (1 + i)^n. You supply the inflation rate yourself; the calculator does not look one up.

Future cost formula

FV=PV (1+i)nFV = PV\,(1 + i)^{n}
FV
Future cost (nominal amount needed later).
PV
Amount today (present value).
i
Annual inflation rate as a decimal (rate ÷ 100).
n
Number of years.

1,000 at 3% over 10 years gives a future cost of about 1,343.92, so today's 1,000 keeps about 744.09 of its purchasing power.

Method & sources

Inflation compounds once a year at a constant rate for the whole period. The rate is the same every year. You can type any rate or pick one of the official historical presets (latest year, 5- and 10-year averages from the Bureau of Labor Statistics); the calculator does not fetch live figures. Future cost is today's amount grown by the inflation factor; future purchasing power is today's amount divided by it.

Sources

Where this method comes from — use these references to understand the formula, assumptions, and limits.

How we calculate

  • Inflation compounds once a year at a constant rate for the whole period.
  • The rate is the same every year. You can type any rate or pick one of the official historical presets (latest year, 5- and 10-year averages from the Bureau of Labor Statistics); the calculator does not fetch live figures.
  • Future cost is today's amount grown by the inflation factor; future purchasing power is today's amount divided by it.
  • The currency shown follows the site language; the math is the same in every market.
  • Taxes, interest, and changes to the inflation rate over time are not included.

Rounding

Costs and values are rounded to two decimals for display. The calculation uses full precision.

What this calculator does

Inflation makes money buy less over time. This calculator compounds a yearly inflation rate over a number of years to show two things: the future cost — the larger amount you would need later to buy what your amount buys today — and the future purchasing power — what today's amount would actually be worth in future money.

How to use it

  1. Enter the amount of money today.
  2. Enter the annual inflation rate as a percentage.
  3. Enter the number of years to project forward.
  4. Read the future cost, future purchasing power, and purchasing power lost below.

A worked example

1,000 at 3% inflation over 10 years has a future cost of about 1,343.92 — that is what you would need to buy the same basket. The future purchasing power of that 1,000 is about 744.09, meaning roughly 255.91 of its value is lost to inflation.

Where the inflation rate comes from

You choose the rate. Next to the rate field the calculator offers official historical presets — the latest full year plus the 5- and 10-year averages of the US Consumer Price Index (CPI-U) from the Bureau of Labor Statistics — and a year-by-year table so you can see how much inflation has actually varied. The figures are curated with the calculator and dated, not fetched live, and you can always type any rate, a forecast, or your own assumption instead. Make sure it is an annual rate.

Common mistakes

  • Mixing up future cost and future purchasing power. Future cost goes up; purchasing power goes down.
  • Entering a total multi-year change where an annual rate is expected. The calculator compounds the rate each year.
  • Assuming the rate stays the same in reality. This is a constant-rate projection, not a forecast.

When it's useful

Planning savings goals, checking whether a wage keeps pace with prices, or getting a feel for how much a fixed sum will be worth years from now.

FAQ

How is the future cost calculated?
It compounds the annual inflation rate over the number of years: the amount today multiplied by (1 + rate) to the power of the years. The rate is entered as a percentage and divided by 100.
What is future purchasing power?
It is what today's amount would be worth in future money: the amount divided by the same inflation factor. It shows how much real value survives inflation.
Why do future cost and purchasing power differ?
Future cost multiplies by the inflation factor and purchasing power divides by it. One rises and the other falls as inflation compounds over time.
Does this use a real inflation rate?
No. You supply the rate. The calculator does not fetch official figures, so the result is only as accurate as the rate you enter.
Which currency does it use?
The currency follows the site language. The inflation math is identical in every market.
Can I share a calculation?
Yes. Use Share to copy a link that reopens the calculator with the same amount, rate, and number of years.

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