Inflation Adjusted Value Calculator
Inflation steadily reduces what your money can buy. This calculator shows how much a sum will be worth — or need to grow — over a number of years at a given inflation rate, so you can plan for real purchasing power.
How it works
Inflation compounds like interest. To find the future cost of an item that costs the same in real terms, multiply by (1 + rate)^years. The formula is: Future Cost = Amount × (1 + r)^n, where r is the annual inflation rate as a decimal and n is the number of years.
To find the real (purchasing power) value of a fixed amount of money after inflation, you divide instead: Real Value = Amount ÷ (1 + r)^n. The difference between today's amount and that shrunken real value is the purchasing power you lose if your money simply sits idle.
Tips
Use a long-term average inflation rate (often around 2–3%) rather than a single high or low year for more realistic projections.
To preserve purchasing power, aim for savings or investments that earn at least the inflation rate after taxes and fees — otherwise your real wealth declines even as the dollar figure stays the same.
FAQ
What inflation rate should I use?
A common long-term assumption is 2–3% per year, close to many central bank targets. You can enter a higher rate to stress-test against periods of elevated inflation.
What's the difference between future cost and real value?
Future cost shows how many dollars you'll need later to buy what costs a set amount today. Real value shows how little a fixed amount of money will actually buy after inflation erodes it.
Does this account for investment returns?
No. This tool isolates inflation only. To see net effect, compare your expected investment growth rate against the inflation rate shown here.