Personal Finance
Inflation Calculator
Inflation silently rewrites every long-term plan. See what today's money will be worth, and what future goals will cost.
Inflation measures how prices rise and money’s buying power falls. At 3% annual inflation, $1,000 today buys what about $744 buys in 10 years. Historical U.S. inflation has averaged roughly 3.3% since 1913. Figures are estimates before taxes and fees — verify details with a licensed advisor where needed.
~3% long-run US inflation.
Prices double ≈ every 24 years at 3%.
Always model goals in future dollars.
Calculate Your Inflation
Future Cost
What Is Inflation?
Inflation is the general rise in prices, equivalently, the fall in what a unit of money buys. The U.S. CPI has averaged roughly 3.3% annually since 1913.
The same formula runs both directions: inflate today's amounts into future costs, or deflate future amounts into today's buying power.
How It Is Calculated
Future value = amount × (1 + inflation)^years
Buying power = amount ÷ (1 + inflation)^years
Example: Example: $10,000 at 3% for 20 years → future cost ≈ $18,061; today's $10k buys what $5,537 buys then
What $100 becomes (buying power)
| Rate | 10 yrs | 20 yrs | 30 yrs |
|---|---|---|---|
| 2% | $82 | $67 | $55 |
| 3% | $74 | $55 | $41 |
| 5% | $61 | $38 | $23 |
Limitations
- CPI measures a basket that may not match your spending (healthcare inflates faster).
- Past inflation doesn't set future inflation.
- Asset returns must be compared in real (inflation-adjusted) terms.
Sources & Review
References used for this calculator’s formulas and thresholds:
Inflation FAQ
What will $100,000 be worth in 20 years?
At 3% inflation, about $55,000 in today's purchasing power.
How much will college cost in 18 years?
Higher education has inflated faster than CPI (~5%/yr historically). A $30k/year program could reach $70k+/year.
How do I protect savings from inflation?
Hold growth assets (stocks, real estate, TIPS) for long horizons; cash loses to inflation every year.
Why does 2% inflation matter?
It's the Fed's target, stable but cumulative: prices roughly double every 36 years at 2%.
A note before you begin: this tool offers educational estimates only. It cannot replace advice from a qualified professional.