Calculator
Inflation calculator
Inflation quietly erodes purchasing power. Money left in cash steadily loses real value. This calculator shows exactly how much.
Updated July 2026
$
%
Future purchasing power
$55,368
In today's dollars
Purchasing power lost
$44,632
How it works
Future Purchasing Power = Present Value / (1 + i)^t
- Present Value is the amount today.
- i is the annual inflation rate as a decimal (3% = 0.03).
- t is the number of years.
- Result tells you what today's dollars will be worth in future purchasing power.
Worked examples
- $100,000 at 3% inflation for 20 years is worth about $55,000 in today's purchasing power.
- At 5% inflation, the same $100,000 is worth about $37,700 after 20 years.
- Cash in a savings account earning less than inflation loses real value each year.
Frequently asked questions
What is a typical inflation rate?
Central banks in most developed economies target around 2%. Actual inflation varies year to year, and personal inflation depends on your specific spending mix.
How do I protect against inflation?
Stocks and real estate historically outpace inflation over the long run. Inflation-protected bonds (TIPS, index-linked gilts) and I Bonds explicitly track inflation.
Is inflation always bad?
Modest, stable inflation (~2%) is considered healthy for growth. High or unstable inflation erodes savings and complicates planning.
Related
Educational information only. Not personalised financial advice. Consult a qualified professional for decisions specific to your situation.