Inflation Calculator

How to use the inflation calculator

1. Enter an amount of money today.
2. Enter an average yearly inflation rate.
3. Enter the number of years.
4. Read how much you would need, and what today's money would be worth.

How inflation changes the value of money

Inflation means prices rise over time, so the same money buys less. This inflation calculator shows that two ways. It works out how much you would need in future to buy what a sum buys today, and it works out what today's money would be worth in future in today's terms. Both come from compounding the amount by the average rate you assume over the number of years.

Purchasing power and the value of money over time

Purchasing power is what your money can actually buy. When inflation runs at, say, 3% a year, prices roughly double in a bit over 20 years, which halves the buying power of cash left under the mattress. That is why the value of money over time matters for long-term plans: a fixed amount saved with no return quietly loses ground to rising prices.

Deflation and negative rates

Inflation is not always positive. In a period of deflation, prices fall and money buys more over time. Enter a negative rate and this tool models that case, showing the amount needed dropping and the buying power rising. Deflation is less common but real, and the same maths handles it.

An estimate, not financial advice

This uses a single average rate that you assume for the whole period. Real inflation varies year to year, differs by country, and depends on what you buy, so use an official published rate for your region and treat the result as an estimate. This is not financial advice.

FAQ

How does inflation affect the value of money?

It reduces what money can buy over time. At a positive rate, a fixed amount buys less each year, so its purchasing power falls even though the number stays the same.

How do I calculate the future value with inflation?

Multiply the amount by one plus the rate, compounded for the number of years. The tool does this and also shows the reverse: what today's money would be worth later.

Can it handle deflation?

Yes. Enter a negative rate and the tool models falling prices, where money buys more over time.

What inflation rate should I use?

Use an official published average for your country and period, since inflation varies. The tool takes whatever rate you assume, so a realistic figure gives a realistic result.

Is my information private?

Yes. Everything is calculated in your browser and nothing you enter is uploaded or saved.