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Inflation Calculator

Enter an amount, a number of years, and an average inflation rate to see how much purchasing power erodes over time.

Equivalent cost in 20 years

$1,806.11

what will cost the same as $1,000.00 does today

$1,000.00 today will only buy about

$553.68

worth of today's goods and services then

Over 20 years at 3.0% average annual inflation, prices rise a total of 80.6%.

The formula, in plain language

Future equivalent cost = Amount × (1 + rate)^years

Future purchasing power = Amount / (1 + rate)^years

Both use the same compounding idea as compound interest, just applied to rising prices instead of a growing balance.

Worked example

Suppose you have $1,000 today and inflation averages 3% per year over the next 20 years:

  • Future equivalent cost: $1,000 × (1.03)^20 ≈ $1,806.11
  • What $1,000 today will feel like in 20 years: about $553.68 of today's purchasing power
  • Total inflation over the period: about 80.6%

Frequently asked questions

What's the difference between the two results shown?+

'Equivalent cost' answers: how many future dollars will it take to buy what today's amount buys now? 'Purchasing power' answers the flip side: if you kept exactly today's amount unspent, how much would it actually be worth (in today's terms) after that many years of inflation? They're two views of the same erosion effect.

What inflation rate should I use?+

For a rough long-run planning estimate, many people use a country's historical average inflation rate — but actual inflation varies significantly year to year and by country, and past averages are not a guarantee of future rates. Check your own country's statistics agency or central bank for current and historical figures if you want more precision.

Does this apply to salaries and investment returns too?+

The same compounding math applies any time you're comparing a fixed nominal figure across years — but for salaries you'd compare against wage growth, and for investments you'd compare the (nominal) return against the inflation rate to get a real, inflation-adjusted return. This calculator only models the erosion of a static dollar amount.

Not financial advice. This calculator is provided for general educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Results are estimates based on the assumptions you enter and may not reflect actual returns, fees, or taxes. Consult a qualified financial professional before making decisions based on this information.