How to use this calculator
- Enter an amount — a sum of money or today's price of something you buy.
- Enter an annual inflation rate — use the long-run CPI average or your own expectation.
- Set the number of years to see the future cost, lost purchasing power, and a year-by-year view.
The formula
Future cost = Amount×(1+r)^n; Future purchasing power = Amount÷(1+r)^n
r = annual inflation rate, n = years. Two views of the same process: goods need more money over time, and money buys less.
Frequently asked questions
What inflation rate should I use?
A common starting point is the long-run official CPI average (most developed economies target around 2%). For stress testing, try 3–5%.
Why do prices feel like they rise faster than CPI?
CPI is an average across a basket of goods with fixed weights. Big-ticket items such as housing, education, and healthcare often weigh less in the index than in your personal spending, so lived inflation can feel higher.
How do I protect against inflation?
The standard approach is to hold assets whose returns beat inflation over the long run: diversified equities, inflation-linked bonds, and growing your income. Cash loses purchasing power whenever inflation exceeds deposit rates.
What is the Rule of 72?
Divide 72 by the annual rate to estimate the doubling time of prices (or money). At 6% inflation, purchasing power halves in roughly 12 years.
Disclaimer Results are for reference only and do not constitute financial, tax, or legal advice. Actual rates, returns, and fees depend on the terms of your financial institution.