How inflation affects your money
Inflation is the gradual rise in prices over time. As prices go up, each dollar buys a little less. This calculator shows two sides of the same coin: how much something that costs a set amount today will cost in the future, and how much buying power a fixed amount of cash will have lost by then.
Why it matters for saving
Money sitting in cash slowly loses value to inflation. To at least keep pace, your savings generally need to earn a return close to or above the inflation rate — which is why many people invest rather than hold only cash.
Frequently asked questions
What inflation rate should I use?
Long-term averages are often around 2-3% per year in many developed economies, but it varies by country and period.
How is future cost calculated?
Amount × (1 + rate)^years. Buying power is amount ÷ (1 + rate)^years.
Is my data saved?
No. Everything runs in your browser.