Planning · Inflation
What will today's money be worth later?
Enter any amount, an inflation rate, and a time period. See the equivalent future amount, the real purchasing power, and how much value has quietly slipped away.
Future value
Equivalent future amount-
Real purchasing power of your amount-
Value lost to inflation-
% of purchasing power lost-
Formulas
Equivalent future amount = Present × (1 + inflation)years. Real purchasing power = Present ÷ (1 + inflation)years.
Inflation — frequently asked questions
What is a typical long-run inflation rate?
In most developed economies, long-run inflation averages 2–4% per year, but it can spike higher during crises. Central banks often target around 2%. For long-term planning (10+ years), 3% is a common default.
What does "purchasing power" mean?
Purchasing power is what your money can actually buy. If inflation runs 3% annually for 20 years, 100 today only buys what about 55 buys now. Your nominal dollars grow, but what they purchase shrinks.
How does inflation affect retirement savings?
Dramatically. Money parked in low-yield accounts loses real value every year inflation exceeds the interest rate. That's why retirement planners use "real" (inflation-adjusted) returns — typically 4–5% real for stocks vs 0–1% for cash.
Financial guides to go deeper
Short, practical reads that pair with our calculators.
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