What is this calculator?
Estimate how an assumed inflation rate changes future cost and purchasing power.
What can you use it for?
Use this tool to compare a financial scenario using the assumptions you control. Estimate how an assumed inflation rate changes future cost and purchasing power.
How to use it
- Enter current amount.
- Enter annual inflation (%).
- Enter years.
- Select Calculate (or Generate for random tools).
- Read the answer and any additional results below the form. Check the units and the limits of the method.
Formula and method
Future purchasing power = current amount/(1+annual inflation/100)^years
The formula uses the units and definitions shown above. Each input is substituted before the arithmetic is evaluated; the calculated output is rounded for display.
Worked example
Current amount: 10000, Annual inflation (%): 5, Years: 10. The result is 16,288.94626777 (future equivalent cost).
Assumptions and limits
Uses your entered constant rate, not a live CPI series.
Frequently asked questions
What inputs does the Inflation Calculator need?
Use current amount, annual inflation (%), years. Read the answer and any additional results below the form. Check the units and the limits of the method.
What assumptions apply to the Inflation Calculator?
Uses your entered constant rate, not a live CPI series.