Financial Calculators
Inflation Calculator
See how inflation reduces the purchasing power of money over time. Enter any amount and inflation rate to understand its real future value.
Inflation Details
Purchasing Power Over Time
| Year | Purchasing Power of $100 |
|---|---|
| 2026 | $97 |
| 2028 | $92 |
| 2030 | $86 |
| 2032 | $81 |
| 2034 | $77 |
| 2036 | $72 |
| 2038 | $68 |
| 2040 | $64 |
| 2042 | $61 |
| 2044 | $57 |
| 2045 | $55 |
What $100 buys in 20 years
$100
Costs $181 in 20 years
Today's Value
$100
Future Cost
$181
in 20 yrs
Purchasing Power Lost
44.6%
of original value
Real Value
$55
today's equivalent
What this means
In 20 years, you will need $181 to buy what $100 buys today at a 3.0% inflation rate.
What is inflation?
Inflation is the rate at which the general level of prices for goods and services rises over time, decreasing purchasing power. The US Federal Reserve targets a 2% annual inflation rate. Historically, the US has averaged around 3% annually.
How does inflation affect savings?
If your savings earn less than the inflation rate, your money loses real purchasing power over time. For example, $10,000 in a savings account earning 1% in a 3% inflation environment loses about 2% of real value per year.
How to protect against inflation?
- Invest in assets that historically outpace inflation (stocks, real estate)
- Consider inflation-protected securities (TIPS)
- Increase income over time to match rising costs
- Avoid holding large amounts in low-yield cash accounts long-term