Inflation calculator: what will today's money be worth in the future?
Pick an amount, an inflation rate you think is plausible and a number of years to see how the same basket could cost more and the same dollars buy less.
Education only, not investment, tax or legal advice. Crypto-assets are high-risk — risk disclosure.
The short answer
Inflation means goods cost more over time. At an assumed annual rate i, a basket costing A today costs A × (1 + i)^n after n years, and A dollars kept as cash buy only A ÷ (1 + i)^n of today's goods. The rate is an assumption, not a forecast.
Key takeaways
- The calculator projects forward using one inflation rate that you choose; it does not predict inflation.
- Future cost and purchasing power are two views of the same effect: prices up, buying power down.
- Small rates add up: over decades, even modest inflation removes a large share of cash's buying power.
- To look backward with real data, the US Bureau of Labor Statistics runs a calculator built on the Consumer Price Index.
How do you use the inflation calculator?
Three inputs
- 1
Amount today
Enter a sum of money, or the price of something you buy, in today's dollars.
- 2
Assumed annual inflation
Enter the yearly price rise you want to test. Try a low, a middle and a high case rather than a single guess.
- 3
Years
Enter how far ahead you want to look, for example the years until a goal or until retirement.
You get three answers: what the same basket of goods would cost after that many years, what today's amount would buy in today's prices if left as cash, and the share of buying power lost. The rate is held constant every year, which real inflation never is.
What formula does the inflation calculator use?
The calculator compounds the assumed rate year by year, the same way interest compounds, but in reverse for your purchasing power:
- Future cost = A × (1 + i)^n
- Purchasing power = A ÷ (1 + i)^n
- Purchasing power lost = 1 − 1 ÷ (1 + i)^n, shown as a percentage
Here A is the amount today, i is the assumed annual inflation rate as a decimal (3% becomes 0.03) and n is the number of years. Because the rate compounds, the loss of buying power is not simply rate × years: 3% for 10 years removes about a quarter of buying power, not 30%.
Figure · Looking back vs looking ahead
BLS CPI calculator
- Uses actual CPI-U index data
- Compares two past dates
- Answers: what did it cost?
This calculator
- Uses a rate you choose
- Projects years ahead
- Answers: what might it cost?
Worked example: what does 3% inflation do to $1,000 over 10 years?
Worked example
$1,000 at an assumed 3% a year (illustrative)
Enter 1000, 3 and 10. A basket that costs $1,000 today would cost $1,343.92 in 10 years. Turned around, $1,000 kept in cash would buy only $744.09 worth of today's goods, a loss of 25.59% of its purchasing power.
At 2% the same decade leaves $820.35 of buying power; at 3% over 30 years it leaves $411.99.
Purchasing power of $1,000 in cash under constant assumed inflation (calculated with the calculator)
| Inflation | 10 years | 20 years | 30 years |
|---|---|---|---|
| 2% | $820.35 (18.0% lost) | $672.97 (32.7% lost) | $552.07 (44.8% lost) |
| 3% | $744.09 (25.6% lost) | $553.68 (44.6% lost) | $411.99 (58.8% lost) |
| 5% | $613.91 (38.6% lost) | $376.89 (62.3% lost) | $231.38 (76.9% lost) |
Which inflation rate should you enter?
There is no correct number, but two official reference points can help frame a range.
The first is recent history. The Bureau of Labor Statistics reported that the Consumer Price Index for All Urban Consumers (CPI-U) rose 3.4% over the 12 months to August 2026, before seasonal adjustment3. The CPI tracks the average change in prices consumers pay for a representative basket of goods and services1. One year's reading is not a forecast, and BLS updates the figure every month.
The second is policy. The Federal Reserve aims for inflation of 2% over the longer run, measured by the price index for personal consumption expenditures (PCE), not the CPI4. A goal is not a guarantee, so test 2% alongside higher cases.
For past periods, use the official BLS CPI Inflation Calculator, which uses the CPI-U U.S. city average for all items, not seasonally adjusted2. Our explainer on what inflation is covers the causes.
What does the inflation calculator leave out?
- Changing rates. Real inflation rises and falls from year to year; the calculator uses one constant rate.
- Your own basket. The CPI is an average for urban households, and BLS notes it is not a complete cost-of-living index1. Your prices may rise faster or slower.
- Interest and returns. Money in a savings account or investment can grow. Pair this page with the compound interest calculator and compare the two rates.
- Tax. Interest that only keeps pace with inflation may still be taxed, leaving less real growth.
Risk warning
Beating inflation means taking some risk
Cash loses buying power when inflation is positive, but assets that might outpace it, from stocks to crypto, can also fall in value. No asset is a sure hedge. Read our risk disclosure before acting on any projection.
Common beginner mistakes
Treating the rate as a forecast
The output is only as good as the rate you type in. Test several.
Multiplying instead of compounding
Inflation compounds, so 3% for 10 years is not a 30% loss.
Mixing up future cost and purchasing power
One says what prices become; the other says what your dollars buy. Both describe the same erosion.
Frequently asked questions
What is the difference between CPI and inflation?
Inflation is the general rise in prices. The CPI is one official way to measure it, by tracking the average price of a representative basket of consumer goods and services1.
Can I use this calculator for past years?
Only roughly. For past periods the BLS CPI Inflation Calculator is more accurate because it uses actual index data2.
How do I work out inflation between two CPI readings?
Divide the change in the index by the starting index and multiply by 100. BLS gives the example (121.5 − 112.5) ÷ 112.5 × 100 = 8.0%1.
Does the calculator work for deflation?
It is designed for positive inflation. With falling prices, buying power would rise instead.
The bottom line
Inflation quietly reduces what cash can buy, and compounding makes the effect bigger over long periods. Use the calculator to test a range of assumed rates, check recent official data from BLS for context, and remember that one constant rate is a simplification of a path that will move around.
Sources
- Consumer Price Index: Frequently Asked Questions — U.S. Bureau of Labor Statistics Primary source
- CPI Inflation Calculator — U.S. Bureau of Labor Statistics Primary source
- Consumer Price Index – August 2026 (news release USDL-26-1496, published September 11, 2026) — U.S. Bureau of Labor Statistics, 2026 Primary source
- Why does the Federal Reserve aim for inflation of 2 percent over the longer run? — Board of Governors of the Federal Reserve System Primary source
How we checked this page: every figure above links to the numbered source it came from. Spotted an error? Tell the desk — see our editorial policy.
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