How the Inflation Calculator works
Estimate future cost after inflation. Adjust the inputs above, then use the calculate button to generate a fresh estimate based on the numbers you entered.
The result is designed to give you a quick planning number, plus a short breakdown of the major figures behind it. You can reset the form at any time and try a different scenario.
When to use this calculator
Use this inflation calculator to estimate how future prices may change if costs rise at a steady annual rate. It is useful for retirement planning, education costs, large purchases and understanding purchasing power.
Formula
Future cost = current amount x (1 + inflation rate)^years
- Current amount is the cost or value in today's dollars.
- Inflation rate is the assumed annual increase.
- Years is the time between now and the future date.
Worked example
For a $10,000 cost today and 3% annual inflation for 10 years, the calculator estimates a future cost of about $13,439.
Common mistakes
- Assuming inflation is the same every year.
- Using broad inflation for a cost that rises faster, such as tuition or insurance.
- Ignoring inflation in long-term savings goals.
FAQs
Does inflation reduce purchasing power?
Yes. If prices rise, the same dollar amount buys less in the future.
What inflation rate should I use?
Use a realistic long-term estimate, and test higher rates for conservative planning.
Is this an exact forecast?
No. It is a steady-rate estimate, not a prediction of actual inflation.