US Inflation Calculator
Estimate how inflation erodes purchasing power over time. See what today's dollars will be worth in the future and what future costs translate to in today's money.
Results
What is it?
Inflation measures how the general price level rises over time, eroding the purchasing power of money. This calculator uses the Consumer Price Index (CPI) concept: at the US historical average of roughly 3% per year, $1,000 today will need about $1,344 in 10 years to buy the same goods. Conversely, $1,000 received in 10 years will only be worth about $744 in today's purchasing power.
How to use
1. Enter the dollar amount you want to analyze. 2. Set the expected annual inflation rate (default is the US historical average of 3.0%). 3. Enter the number of years to project. The calculator shows what that amount will cost in future dollars, how much purchasing power is lost, and the real value of future money in today's terms.
Example scenario
You have $50,000 in a savings account earning 0% real interest. At 3% annual inflation over 20 years, something that costs $50,000 today will cost about $90,306. Your $50,000 in savings will only buy $27,684 worth of today's goods — a purchasing power loss of $22,316.
Pro tip
To maintain purchasing power, your investments must earn returns above the inflation rate. If inflation is 3% and your savings earn 2%, you are losing 1% of real purchasing power each year. Target investments with real (inflation-adjusted) positive returns for long-term wealth preservation.