Finance
Inflation Calculator
Calculate the future or past value of money adjusted for inflation. Solve for future value, present value, annual inflation rate, or the number of years.
Future Value
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Inflation Formula
Future Value
FV = PV × (1 + r)ⁿ
Inflation Rate
r = (FV ÷ PV)^(1/n) − 1
What Is Inflation and Why Does It Matter?
Inflation measures how quickly money loses purchasing power. A dollar today buys less than a dollar bought 10 years ago. Understanding inflation is essential for retirement planning, salary negotiations, and comparing prices across time.
Use the Future Value mode to see how much you'll need in the future to match today's purchasing power. Use the Present Value mode to understand what a future amount is worth in today's money.
Frequently asked questions
What is inflation?
Inflation is the rate at which the general level of prices for goods and services rises over time, reducing purchasing power. If inflation is 3% per year, something that costs $100 today will cost $103 in one year.
How do I calculate the future value of money with inflation?
Future Value = Present Value × (1 + inflation rate)^years. For example, $10,000 today at 3% annual inflation will be worth the equivalent of $13,439 in 10 years in nominal terms — meaning you'll need $13,439 to buy the same things that $10,000 buys today.
What is the average US inflation rate?
The long-term average US inflation rate has been around 3% per year. The Federal Reserve targets a 2% annual inflation rate as a benchmark for a healthy economy. Actual rates vary — they were near 9% in 2022 and around 2–3% in the mid-2010s.
How does inflation affect savings?
Inflation erodes the purchasing power of cash savings. If your savings account earns 1% interest but inflation is 3%, your money is effectively losing 2% of its purchasing power each year. This is why investing in assets that outpace inflation — like equities — is important for long-term financial planning.
What is the Rule of 70 for inflation?
The Rule of 70 estimates how many years it takes for prices to double at a given inflation rate: Years to Double = 70 ÷ inflation rate. At 3% inflation, prices double roughly every 23 years. At 7% inflation, they double in just 10 years.