Investing

Inflation Calculator

See what rising prices do to your money over time.

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How this calculator works

Inflation is the quiet tax on every dollar you hold: at 3% a year, prices double roughly every 24 years, which means money stuffed under the mattress loses half its buying power in a generation. This inflation calculator makes that erosion concrete two ways. Enter an amount today and it shows what the same basket of goods will cost in the future, and what a fixed future sum (like a pension payout) will actually be worth in today's dollars.

The results reframe common decisions. A "safe" 1% savings account during 3% inflation guarantees losing about 2% of purchasing power yearly, which is why long-term money needs to be invested, not just saved. Salary negotiations look different too: a 2% raise during 3% inflation is a pay cut in real terms. The growth chart plots the compounding curve so you can feel how inflation, like interest, accelerates over time. Use the historical US average of about 3% for planning, but try 5–6% to stress-test your retirement plan against a bad decade.

Frequently asked questions

What is a good inflation rate to assume?
About 3% is the long-term US average and a solid planning default. Use 2% for optimistic and 4–5% for conservative stress tests.
How does inflation affect my savings?
Cash earning less than inflation loses purchasing power every year. At 3% inflation, $10,000 in a 0% account buys only about $7,400 worth of goods after 10 years.
What is the Rule of 72?
Divide 72 by the inflation rate to estimate doubling time: at 3%, prices double in ~24 years; at 6%, in ~12 years.
Does inflation affect investments too?
Yes, which is why investors talk about "real" (inflation-adjusted) returns. Stocks have historically returned about 7% real over long periods, beating inflation comfortably.
Disclaimer: Results are estimates for planning purposes only and are not financial advice. Actual loan terms, taxes and investment returns vary. Consult a qualified professional before making financial decisions.