Inflation Calculator
Estimate the future cost of goods, services, or living expenses based on an annual inflation rate.
Inflation Over Time
| Period | Present Cost | Future Cost | Price Increase |
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The Silent Tax
Inflation is often called the "silent tax" because it subtly erodes your purchasing power over time. If an item costs $1,000 today and inflation averages 3% per year, you will need significantly more money in the future just to buy that exact same item.
This is exactly why investing is critical. If your money is sitting in a bank account earning 1% while inflation is 3%, you are actively losing wealth every single year. You can use our Timeline Simulator to test how different investment returns outpace inflation.
The Math of Inflation
Inflation compounds exactly like interest does, just in the opposite direction.
The formula to find the future cost of an item is: Future Cost = Present Cost × (1 + Inflation Rate)^Years
For example, if a car costs $20,000 today and inflation is 4% per year, in 10 years that same model of car would likely cost $20,000 × (1 + 0.04)^10 = $29,604.
If you want to look at it from the perspective of purchasing power (how much your current money will be worth in the future), the formula is: Purchasing Power = Present Amount / (1 + Inflation Rate)^Years
Understand the bigger picture in our guide to how inflation affects investments, or model a portfolio that outpaces it with the Timeline Simulator.