Inflation Calculator
To maintain the same purchasing power
you'll need
$0
in 10 years
This amount had the same value as
$0
10 years ago
Purchasing Power Lost
0%
Value Decrease
$0
Purchasing Power Over Time
How to Use the Inflation Calculator
- Choose "Future Value" or "Past Equivalent" mode
- Enter the dollar amount
- Enter the expected annual inflation rate
- Enter the number of years
- See how inflation affects purchasing power
Beating Inflation
- Invest in stocks - Historically outpace inflation (7-10% avg returns)
- Real estate - Property values and rents tend to rise with inflation
- I-Bonds - Treasury bonds indexed to inflation
- TIPS - Treasury Inflation-Protected Securities
Frequently Asked Questions
What is inflation?
Inflation is the rate at which prices increase over time, reducing the purchasing power of money. A 3% inflation rate means $100 today will only buy $97 worth of goods next year.
What's the average inflation rate?
Historical US inflation averages about 3% per year. Recent years have seen higher inflation (6-9% in 2022). The Federal Reserve targets 2% annual inflation.
How does inflation affect savings?
If inflation is higher than your savings interest rate, your money loses purchasing power. With 3% inflation and 1% savings rate, you effectively lose 2% annually.
What's the difference between nominal and real returns?
Nominal returns are the actual percentage gain. Real returns are adjusted for inflation. Real Return ≈ Nominal Return - Inflation Rate.