Inflation Calculator
Calculate how inflation affects your money's purchasing power over time and plan your finances accordingly.
Understanding Inflation's Impact on Your Money
Our Inflation Calculator helps you understand how inflation erodes purchasing power over time. Inflation represents the rate at which the general level of prices for goods and services rises, subsequently decreasing your purchasing power.
Why Inflation Matters
Even seemingly low inflation rates can significantly impact your long-term financial planning. For example, at just 3% annual inflation, $100 today would only buy $74 worth of goods after 10 years, and only $55 after 20 years.
Key Features of Our Calculator:
- Calculate the future value of money based on projected inflation rates
- Compare purchasing power across different time periods
- Visualize inflation's impact on your savings and investments
- Customize calculations with your own inflation rate projections
- Get practical insights for inflation-protected financial planning
How to Use the Calculator:
- Enter your starting amount in today's dollars
- Select your starting year (the year of your original amount)
- Choose your target future year
- Use the default inflation rate or enter your own estimate
- Click "Calculate Inflation Impact" to see results
Inflation Protection Strategies
To protect against inflation's erosion of your wealth, consider:
- Investing in assets that historically outpace inflation
- Treasury Inflation-Protected Securities (TIPS)
- Real estate investments
- Diversifying your investment portfolio