See how inflation changes prices and buying power over time. Enter an amount, an annual inflation rate, and a number of years.
Future Cost
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What it will cost.Usage Tip
Compare any investment return to the inflation rate — a 5% return at 3% inflation is only about 2% real growth.
THE MATH
Future cost = amount × (1 + inflation)^years
Future buying power = amount ÷ (1 + inflation)^years
Future buying power = amount ÷ (1 + inflation)^years
Inflation raises prices over time, so a fixed amount buys less in the future.
This uses a constant annual rate; real inflation varies year to year.
This uses a constant annual rate; real inflation varies year to year.
Historically US inflation has averaged roughly 2 to 3% per year, with spikes.
Investments need to beat inflation just to preserve buying power; the gap is the real return.
Fixed incomes and cash lose value to inflation unless they grow at least as fast.
Investments need to beat inflation just to preserve buying power; the gap is the real return.
Fixed incomes and cash lose value to inflation unless they grow at least as fast.