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Inflation Calculator

See how inflation affects your money over time. Enter an amount, inflation rate, and number of years to see how much prices will rise and how much purchasing power you will lose.

How to Use

1 Enter an amount.
2 Set the inflation rate (historical US average is ~3%).
3 Enter the number of years.
4 Click Calculate.

Formula

Future Value Amount x (1 + Rate/100)^Years
Purchasing Power Amount / (1 + Rate/100)^Years

Example

At 3.5% inflation, $50,000 today will need to be $70,530 in 10 years to maintain the same purchasing power. Your $50,000 will only buy what $35,450 buys today.

Why It Matters

Inflation silently erodes your savings. Money sitting in a 0% interest checking account loses ~3% of its value every year. Investing in assets that beat inflation (stocks, real estate) is essential for long-term wealth building.

Who Uses This Calculator?

  • • People comparing loan, mortgage, salary, savings, tax, or investment scenarios before making a money decision.
  • • Homeowners, borrowers, employees, freelancers, and small business owners who need fast estimates without a spreadsheet.
  • • Anyone who wants to understand the inputs, formula, and tradeoffs behind a financial result.

Frequently Asked Questions

What is the average US inflation rate?
The long-term average is about 3% per year. Recent years have seen higher rates (6-9% in 2022). The Federal Reserve targets 2% inflation.
How do I protect against inflation?
Invest in assets that historically outpace inflation: stocks (7-10% average return), real estate, TIPS (Treasury Inflation-Protected Securities), and I-Bonds.
Is deflation possible?
Yes, but rare in modern economies. Deflation (negative inflation) can be worse than inflation as it discourages spending and investment. Japan experienced deflation in the 1990s-2000s.

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This calculator provides estimates for informational purposes only and is not financial, tax, or legal advice. Consult a qualified professional before making financial decisions.