Inflation Calculator
See how inflation erodes the purchasing power of money over time. Enter an amount, an annual inflation rate, and a time horizon.
Inputs
US long-term average is roughly 2-3%.
Real value in future dollars
—
Future dollars to match today's purchasing power
—
Purchasing power lost (today $)
—
Lost as % of original
—
About Inflation Calculator
What is inflation?
Inflation is the general rise in prices over time. Each dollar buys less than it used to. The reverse — deflation — is rare in modern economies and usually signals trouble.
Why it matters for savings
Cash held under a mattress loses real value each year. Even a "safe" 2% savings account loses ground to 3% inflation. Investing at the inflation rate just preserves purchasing power; you need a higher return to grow real wealth.
Historical rates
US CPI averaged about 2-3% from 1990-2020, with spikes (e.g., 8-9% in 2022). Long-run inflation is what matters for retirement planning — 3% per year halves your money’s value in about 24 years.