Inflation Calculator
See how inflation changes the purchasing power of your money.
Your details
Future purchasing power
$5,536.76
What $10,000.00 will feel like in 20 years at 3%
Purchasing power over time
- Needed to match $10,000.00
- $18,061.11
- Value lost
- $4,463.24
What does this mean?
Inflation is the gradual rise in prices that makes each unit of money buy a little less over time. This calculator shows the purchasing power of a fixed amount in the future: the same number on the banknote, but worth less in real terms.
The formula
Future purchasing power is amount ÷ (1 + rate)^years. The flip side — how much money you would need in the future to buy what your amount buys today — is amount × (1 + rate)^years.
A quick example
At 3% inflation, $10,000 today has the purchasing power of roughly $5,500 in 20 years. To buy the same basket of goods you would need about $18,000. This is why money kept as idle cash quietly loses value, and why long-term savings are usually invested.
Tip: compare any expected savings or investment return against the inflation rate — only the gap above inflation grows your real wealth.
Frequently asked questions
What is purchasing power?+
Purchasing power is how much your money can actually buy. As prices rise with inflation, the same amount of money buys fewer goods and services, so its purchasing power falls.
What inflation rate should I use?+
Many developed economies target around 2–3% a year, but it varies by country and period. Use a long-run average for your region, or test a few rates to see the range.
Does inflation mean I'm losing money?+
If your money sits as cash earning nothing, its real value falls with inflation. If it earns a return higher than inflation, your real purchasing power still grows.
Is this the same as a cost-of-living calculator?+
It's closely related. This tool uses a single average inflation rate rather than detailed regional price baskets, so treat it as an estimate. It is not financial advice.