Inflation Calculator

How much will your money be worth?

This inflation calculator shows how rising prices change the value of money over time. Enter an amount, an average yearly inflation rate and a start and end year, and you get the equivalent amount, the loss in purchasing power and a year-by-year table.

How to use it

1. Enter the amount of money.
2. Enter the average annual inflation rate you want to use (for example 3.5%).
3. Choose the start year and the end year.
4. Read the result — “$1,000 in 2016 equals $X in 2026” — plus the purchasing power loss and the table for every year in between.

The inflation formula

The calculator compounds the rate once a year:

Future value = amount × (1 + rate ÷ 100)^years

At 3.5% a year, $1,000 grows to about $1,411 after 10 years. In other words, you would need $1,411 in the end year to buy what $1,000 bought in the start year. The purchasing power loss is the difference, also shown as a percentage of the future value.

Which inflation rate should I use?

The calculator uses the single average rate you enter, so you can model any country or scenario. Some guidelines:

• Many central banks target around 2% a year over the long run.
• Use your country official consumer price index (CPI) average for a realistic historical estimate.
• Try a higher rate to stress-test savings or retirement plans.

Why inflation matters

• Savings: cash earning less than inflation loses real value every year.
• Salary: a raise below inflation is a pay cut in real terms.
• Retirement: a fixed income buys less each year; plan for rising costs.
• Pricing: businesses use it to update prices and contracts.

Frequently asked questions

Does this calculator use official CPI data?

No. It applies the fixed average rate you enter to every year. For exact historical values, use your national statistics office CPI data and enter its average rate.

What is the rule of 72?

Divide 72 by the inflation rate to estimate how many years it takes for prices to double. At 3% prices double in about 24 years.