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Inflation Calculator

Calculate how inflation affects the purchasing power of your money over time

Inflation is the rate at which the general level of prices for goods and services is rising. As inflation rises, every dollar you own buys a smaller percentage of a good or service.

Calculator Inputs

Amount*

Start Year*

End Year*

Average Inflation Rate*

Historical average is approx 2.5-3%

Results

Enter values above to see your results

How It Works

This calculator uses the compound interest formula in reverse to show how prices increase over time given an average inflation rate.

Tips & Best Practices

•To protect your savings from inflation, aim for investments that return more than the inflation rate.
•Real estate and stocks have historically been good hedges against inflation.
•A "safe" inflation rate targeted by central banks is usually around 2%.

Frequently Asked Questions

What is purchasing power?

Purchasing power is the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Inflation decreases purchasing power.

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