Calculator

Inflation Calculator

Estimate a future price and the changing purchasing power of money over time.

UNDERSTAND THE ANSWER

How is this calculated?

Inflation compounds because each year’s percentage applies to the prior year’s higher price. Purchasing power uses the inverse of the same compound factor.

Compound inflation formulaFuture cost = Current cost × (1 + inflation rate)ʸᵉᵃʳˢ

A practical example

At 3% annual inflation, something costing $10,000 today would cost about $13,439 in ten years.

Calculation assumptions

  • One constant average inflation rate applies for the full period.
  • The selected amount represents a comparable basket of goods over time.
  • Taxes, investment returns and personal spending changes are excluded.