Inflation Calculator - Purchasing Power | Financial Calculator

Free inflation calculator to see how purchasing power changes over time. Calculate future prices and the real value of your money after inflation.

How to Use

  1. Current Amount — Enter the current amount or asset value you want to evaluate
  2. Annual Inflation Rate — Enter the expected annual inflation rate (%). US average is about 2–3%.
  3. Period — Enter the number of years for the calculation
  4. Calculate — Click Calculate to see future price, real purchasing value, and purchasing power loss rate

FAQ

What is the average inflation rate in the US?

The US has averaged about 2–3% annual inflation over the past decade. During 2021–2023, it surged above 7%. For long-term planning, 2.5–3% is a conservative benchmark.

What happens if my investment return is lower than inflation?

Your real purchasing power decreases. For example, if savings earn 2% but inflation is 3%, you're effectively losing 1% in real terms each year.

How do I factor inflation into retirement savings?

Calculate future monthly needs by multiplying current expenses by (1 + inflation rate)^years. Example: $2,000/month × (1.025)^20 ≈ $3,277 needed 20 years from now.