Inflation Calculator

Calculate purchasing power over time

How to Use

1

Choose calculation type

Select Future Value, Historical Value, or Amount Needed to maintain purchasing power.

2

Enter amount

Input the dollar amount you want to analyze.

3

Set time period

Enter the number of years for the calculation.

4

Set inflation rate

Enter annual inflation rate (historical average is ~3%).

Frequently Asked Questions

What causes inflation?

Inflation is caused by increased money supply, rising demand, supply chain issues, or rising production costs.

What is a normal inflation rate?

Central banks typically target 2% annual inflation. Long-term US average is about 3.2% since 1913.

How does inflation affect savings?

If your savings earn less than inflation, your purchasing power decreases. At 3% inflation, $100 today buys what $97 will buy next year.

How do I protect against inflation?

Invest in assets that historically outpace inflation: stocks, real estate, I-bonds, or TIPS (Treasury Inflation-Protected Securities).

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