Prices rise, so money buys less each year. This free inflation calculator shows what something that costs a certain amount today will cost in the future, or how much your money will really be worth later. You can also work out the average yearly inflation rate from two prices. A chart and year-by-year table make the effect easy to see.
How to use:
- Choose what you want to find.
- Enter the amount today and the number of years.
- Enter the yearly inflation rate, or the final price if you want the rate.
- Click Calculate to see the result, chart and table.
FAQs:
Q: How do you calculate inflation?
A: Future price = today’s price × (1 + inflation rate) raised to the number of years. At 3% for 10 years, $1,000 becomes about $1,344.
Q: What does buying power mean?
A: It is how much you can buy with a fixed amount of money. At 3% inflation, $1,000 buys about $744 worth of today’s goods after 10 years.
Q: What inflation rate should I use?
A: Use your country’s recent average, and try a few rates. Many long-term plans use 2% to 3%.