Inflation and buying power calculator
Type an amount, an average inflation rate you assume and a number of years.
Result
121.90Future price of the same things
- What your amount will buy (in today’s money)
- 82.03
- Buying power lost
- 17.97%
- Assumption: the rate you typed, the same every year. This is not an official price index.
Inputs
- Amount today
- 100
- Assumed average inflation
- 2
- Number of years
- 10
How it is calculated
Factor = (1 + rate ÷ 100) to the power of the number of years.
Result
Future price of the same things
- What your amount will buy (in today’s money)
- 82.03
- Buying power lost
- 17.97%
How it is calculated
- Factor = (1 + rate ÷ 100) to the power of the number of years.
- Future price = amount × factor.
- Real value = amount ÷ factor; loss = 1 − 1 ÷ factor.
Example
100 at 2% a year for 10 years: 100 × 1.02¹⁰ = 121.90. Your 100 will be worth only 82.03 in today’s money.
Good to know
- Real inflation changes every year and from product to product.
- For past years, use your country’s official price index (BLS CPI in the US, ONS in the UK…).
Frequently asked questions
What is this tool used for?
Type an amount, an average inflation rate you assume and a number of years.
How is the result calculated?
Factor = (1 + rate ÷ 100) to the power of the number of years.
What should I check before using the result?
Real inflation changes every year and from product to product.