Calcwise / Money and tax / Inflation calculator
Inflation calculator
Enter an amount, an average yearly inflation rate and a number of years.
Calculated in your browser. Nothing you enter is sent or stored.
About this tool: Inflation calculator
Inflation is the general rise in prices. When prices go up, the same amount of money buys less. The calculator shows both sides: what something costing the amount today will cost later, and what the amount will be worth in today's money.
Use an average rate for the whole period. Inflation differs from year to year and between countries, so check the figure your statistics office publishes before you plan around it.
Formula
Price factor = (1 + rate ÷ 100)^years. Future price = amount × factor. Worth in today's money = amount ÷ factor.
Worked example
1,000 at 3% inflation for 10 years: the factor is 1.03^10 = 1.3439. Goods that cost 1,000 today cost 1,343.92 then, and 1,000 saved under the mattress buys only what 744.09 buys today, a loss of 255.91.
Sources and data
- Formulas and data last reviewed
- Accuracy
- The result is plain maths: with valid input it is exact, and we only round to cents.
Frequently asked questions
Why does my money lose value when I do nothing?
Because prices rise while the amount stays the same. Money in an account that pays less than inflation loses purchasing power every year.
Which inflation rate should I use?
Use the long-run average for your country, or test a few values such as 2%, 3% and 5%. Central banks often target about 2%.
Can I enter negative inflation?
Yes, a negative rate (deflation) is accepted down to just above -50%. Prices then fall and your money buys more.