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Savings & Investing

Inflation Calculator

See what today's money will be worth in the future — how inflation raises prices and erodes purchasing power over time.

USD
%

Many central banks target ~2–3%

years
Cost of the same goods in 20y
$1,806.11
What $1,000.00 will buy then
$553.68
Purchasing power lost
44.6%

What today's $1,000.00 will be worth

Yr 1
$970.87
Yr 3
$915.14
Yr 5
$862.61
Yr 7
$813.09
Yr 9
$766.42
Yr 11
$722.42
Yr 13
$680.95
Yr 15
$641.86
Yr 17
$605.02
Yr 19
$570.29
Yr 20
$553.68

What inflation does to your money

This calculator projects two mirror-image numbers: how much today's prices will rise (the future cost of the same basket of goods), and how much of today's purchasing power your money will keep. Both use simple compounding at the annual rate you choose.

Worked example

At 3% inflation, something that costs 1,000 today will cost about 1,806 in 20 years. Flip it around: 1,000 kept as cash for 20 years will only buy what 554 buys today — nearly half its value quietly gone. That's why "safe" cash is not risk-free over long periods.

Using this in your planning

When you set long-term goals — retirement income, a child's education, a house deposit years away — state them in future money. A retirement income of 30,000 in today's terms needs to be roughly 54,000 in 20 years at 3% inflation. Pair this tool with our compound interest and retirement calculators to check whether your savings plan outpaces rising prices.

Frequently asked questions

+What is inflation?

Inflation is the general rise in prices over time, which means each unit of money buys a little less every year. It's usually quoted as an annual percentage — 3% inflation means what cost 100 last year costs about 103 now.

+What inflation rate should I assume?

Many central banks target about 2%, but actual rates vary by country and decade — recent years saw spikes well above target in much of the world. For long-term planning, 2–3% is a common assumption for stable economies; use higher figures for high-inflation countries.

+How does inflation affect my savings?

Money earning less interest than inflation loses purchasing power even as the number grows. If your account pays 1% while inflation runs 3%, you effectively lose about 2% of buying power a year — a key reason people invest for long-term goals.

+What is the 'rule of 70' for inflation?

Divide 70 by the inflation rate to estimate how many years until prices double. At 3.5% inflation, prices double roughly every 20 years — meaning money under a mattress halves in buying power over that time.

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