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Inflation & purchasing power

What your money will actually be worth.

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% / year
years

Purchasing power

$74,409.39

What today's money buys after inflation

Value lost to inflation
$25,590.61
Loss in percent
25.59%
Equivalent future price
$134,391.64

How it works

Two views of the same problem: what today's money is worth later, and how much later money you need to live the same way.

Future value = Amount × (1 + rate)^years Real value = Amount ÷ (1 + rate)^years

Example: At 3% inflation, 100,000 today has the purchasing power of about 74,400 in ten years.

Questions people ask

What inflation rate should I use?

Most central banks target around 2%. Using 3% is a slightly conservative planning figure for long horizons.

How do I get a real return?

Roughly, subtract inflation from your nominal return. A 7% return with 3% inflation is about 4% in real terms.

Does inflation hit everyone equally?

No. Your personal rate depends on what you buy — rent, energy and food often move very differently from the headline figure.

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