Inflation Calculator
Find out how much a sum of money will be worth, and what it will cost to buy the same goods, after years of inflation.
%
years
What today's goods will cost after inflation.
- 1
Annual growth factor
1 + 3% ÷ 100 = 1.03 - 2
Compound factor over term
1.03^10 = 1.343916How much $1 grows after compounding inflation for the full period. - 3
Future cost
1,000 × 1.343916 = 1,343.92
Formula
How this is calculated
You enter three values: the amount of money today (in your own currency), the annual inflation rate as a percentage, and the number of years to project forward. The rate is divided by 100 to turn the percentage into a decimal, and 1 is added to it to get a yearly growth factor — for example 3% becomes 1.03.
That factor is compounded over the whole period by raising it to the power of the number of years: factor = (1 + rate/100)^years. Future cost multiplies your amount by this factor, showing what the same basket of goods will cost later. Purchasing power divides your amount by the same factor, showing how much real value cash retains if it earns no return; value lost is simply today's amount minus that shrunken purchasing power.
The model assumes a single, constant inflation rate compounded annually, with no taxes, interest, fees, or wage growth. Real inflation varies year to year and differs across spending categories, so treat the result as a smooth, illustrative estimate rather than a precise forecast.
Examples
| Input | Result |
|---|---|
| $1,000 at 3% inflation for 10 years | Future cost ≈ $1,343.92, purchasing power ≈ $744.09 |
About this calculator
Inflation is the gradual rise in the general price level, which means each unit of currency buys fewer goods over time. This calculator shows two complementary views: the future cost of buying today's basket of goods, and the future purchasing power of an amount of money held without earning a return.
The future cost grows by compounding the inflation rate, while purchasing power shrinks by the same factor. Comparing the two highlights why simply holding cash loses real value, and why investments generally need to outpace inflation to preserve and grow your wealth.
Frequently asked questions
Future cost is how much more you will pay for the same goods later. Purchasing power is how much value today's money retains in the future if it earns no return.
Many developed economies target around 2-3% per year. Use a historical average or your country's reported figure for a realistic estimate.
Holding assets that tend to grow at least as fast as inflation, such as diversified investments, helps preserve real purchasing power compared with holding cash.
Also known as
TG we-Calculate Editorial Team. (2026). Inflation Calculator [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/inflation-calculator
TG we-Calculate Editorial Team. "Inflation Calculator." TG we-Calculate. 2026. https://we-calculate.com/calculator/inflation-calculator.
TG we-Calculate Editorial Team, "Inflation Calculator," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/inflation-calculator
@misc{wecalculate_inflation_calculator, title = {Inflation Calculator}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/inflation-calculator}}, year = {2026}, note = {TG we-Calculate} }
Did this calculator help you?