Understand how inflation affects the purchasing power of your money over time.
Inflation Calculator
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How to Use This Calculator
Enter a starting amount, the average annual inflation rate, and the number of years.
Frequently Asked Questions
What is purchasing power?
Purchasing power is the value of a currency expressed in terms of the number of goods or services that one unit of money can buy.
How does the Inflation Calculator work?
The Inflation Calculator applies an annual compound devaluation rate to show how the purchasing power of your cash drops over time.
What rate should I use in the Inflation Calculator?
Historically, inflation averages around 2.5% to 3.5% per year, which is a safe default for the Inflation Calculator.
Why is the Inflation Calculator so important for retirees?
The Inflation Calculator proves that keeping cash under the mattress is dangerous—you must invest to outpace inflation.
Can the Inflation Calculator look backward in time?
This specific Inflation Calculator is designed to forecast *future* purchasing power based on current balances.