Inflation Calculator
Enter an amount, an expected inflation rate, and a number of years to see its future cost and its reduced purchasing power.
Overview
Inflation erodes money in two equivalent ways of looking at the same effect: the price of a fixed basket of goods rises over time, and a fixed amount of money buys less over time. This calculator shows both — the future cost of something that costs a given amount today, and what today's amount would feel like in future purchasing-power terms — using the same compounding rate applied in opposite directions.
Examples
100,000 at 6% inflation over 10 years
Amount: 100000, Rate: 6, Years: 10
Future Cost: 179084.77 Reduced Value of Money: 55839.48
How It Works
- Enter a present-day amount.
- Enter the expected annual inflation rate.
- Enter the number of years — the future cost and reduced purchasing power appear instantly.
FAQ
No. Every calculation runs locally in your browser.
Future Cost = Amount × (1 + rate/100)^years. Reduced Value of Money = Amount ÷ (1 + rate/100)^years — the same factor applied in the opposite direction.
"Future Cost" answers "how much will this cost later" — useful for planning a future expense. "Reduced Value of Money" answers "what would this amount be worth in today's terms if I received it in the future" — useful for judging a future sum, like a salary or a goal amount, in present purchasing power.
You provide it — this calculator doesn't fetch live inflation data. Use your country's published consumer price index rate, or your own assumption, for realistic results.