About the Inflation Calculator
Inflation is the general rise in prices over time. When prices rise, each dollar buys a little less. In the U.S., inflation is most commonly measured by the Consumer Price Index (CPI), published by the Bureau of Labor Statistics.
This calculator uses a constant annual rate that you enter, so results are estimates. Real inflation varies from year to year, sometimes significantly.
How It Works
The calculator compounds your inflation rate over the number of years between the starting and ending year. Multiplying your amount by that growth factor gives the equivalent future cost. Dividing your amount by the same factor gives its purchasing power in starting-year dollars.
For example, at 3% a year, prices rise by about 34% over 10 years, so something that costs $10,000 today would cost about $13,439, and $10,000 would buy only about $7,441 worth of today's goods.
Formula
- rannual inflation rate as a decimal
- tending year − starting year
When historical CPI data is connected, the growth factor is CPI(ending year) ÷ CPI(starting year) instead of (1 + r)t.
Example
You want to know what $10,000 today may be worth in 10 years if inflation averages 3% per year (for example, from 2026 to 2036).
Inputs
- Amount
- $10,000
- Period
- 10 years
- Inflation rate
- 3.00%
Results
- Equivalent future cost
- $13,439.16
- Purchasing power
- $7,440.94
- Total inflation
- 34.39%
Understanding Your Results
- Future Value: How many dollars you may need in the ending year to buy what your amount buys in the starting year.
- Purchasing Power: What your amount in the ending year would be worth in starting-year dollars.
- Total Inflation: The cumulative increase in prices over the whole period.
- Purchasing Power Lost: The percentage of buying power your money loses over the period.