Inflation Calculator — See What Your Money Is Really Worth
How to Use This Inflation Calculator
This calculator shows what today’s dollars will be worth in the future, or what a past price is equivalent to today, based on a chosen inflation rate.
How It’s Calculated
Future Value (real) = Present Value / (1 + inflation rate)^years Past-to-Present Equivalent = Past Amount × (1 + inflation rate)^years
The same rate runs forward to erode future purchasing power or backward to restate an old price in today’s money.
Example
At 3% average annual inflation, $50,000 today has the purchasing power of only about $37,200 in 10 years — a critical adjustment for anyone setting long-term savings or retirement targets in today’s dollars.
Frequently Asked Questions
What inflation rate should I use for long-term projections?
Central banks in the US and Canada generally target around 2% annually, though actual realized inflation varies. Using a range of 2% to 3.5% rather than a single point estimate is more realistic for long-term planning.
Does inflation affect my savings even if I don’t spend it?
Yes — money sitting in cash loses purchasing power every year inflation is positive, which is the core argument for investing long-term savings rather than holding cash.
How is inflation different from the cost of living?
Inflation measures the general price level of a broad basket of goods over time. Cost of living reflects your specific location and spending pattern, which can rise faster or slower than the national inflation average.