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Inflation Calculator: What Will Your Money Be Worth?

Enter an amount, a yearly inflation rate and a number of years. See what the same things will cost, and what your cash will still buy.

Formulas checked by the WhyExplain editorial team · Updated October 2026

What this calculator tells you

It answers two questions at once. First, how much will something that costs a set amount today cost in the future? Second, how much will cash that earns nothing actually buy by then? Both answers come from the same inflation rate, applied once a year.

The formula

Future price = Price today × (1 + r)nBuying power = Amount ÷ (1 + r)n · r = yearly inflation rate as a decimal · n = number of years
Worked example (illustration)$1,000 at 3% a year for 10 years: the same basket costs $1,343.92, and $1,000 kept as cash buys only what $744.09 buys today.

Which inflation rate should you use?

There is no single right number, so try a few. The Federal Reserve aims for inflation of 2% a year over the longer run, measured by the price index for personal consumption expenditures [1]. That makes 2% a sensible "normal" case. A higher number, such as 3% or 4%, shows what happens when prices rise faster than planned.

The figure most news reports quote is the Consumer Price Index (CPI). It tracks how the prices that city households pay for a set basket of goods and services change over time [2]. CPI can swing a lot: consumer prices rose 9.1% in the year to June 2022, the largest 12-month rise in 40 years [3].

Looking back instead of forward

For real past prices, use real past data. This calculator uses one steady rate, so it is best for planning ahead. To compare a price from a past year with today, the US Bureau of Labor Statistics runs a CPI inflation calculator built on the actual monthly figures [4].

Why it matters for your savings

If your savings earn less than inflation, their buying power shrinks even while the balance grows. Money earning 1% while prices rise 3% loses about 2% of its buying power each year. Read what inflation is and why it happens, then see how compound interest can work in the other direction.

Frequently asked questions

Is this the same as the official CPI?

No. CPI is measured from real prices each month. This calculator applies one steady rate that you choose, which is useful for planning but will not match any single year exactly.

What is a normal inflation rate?

The Federal Reserve targets 2% a year over the longer run. Rates above that for a long time mean prices are rising faster than the Fed wants.

Why does buying power fall faster than I expect?

Inflation compounds. Each year's rise is applied to prices that have already gone up, so the loss grows a little faster every year.

How do I protect savings from inflation?

Look for returns that beat inflation over time, such as interest above the inflation rate or long-term investing. Our explainers on index funds and compound interest cover the basics.

Sources

  1. [1] Federal Reserve: Why does the Federal Reserve aim for inflation of 2 percent over the longer run?
  2. [2] US Bureau of Labor Statistics: Consumer Price Index
  3. [3] US Bureau of Labor Statistics: Consumer prices up 9.1 percent over the year ended June 2022
  4. [4] US Bureau of Labor Statistics: CPI Inflation Calculator

This calculator is for education. It assumes a steady rate every year, which real life rarely gives you, and it is not personal financial advice.

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