Explore how inflation impacts your money. Instantly calculate future values, protect your finances, and plan smarter with our powerful, easy-to-use tool.
It only takes a minute to see how inflation affects your money.
Inflation reflects the average rate at which the prices of goods and services increase over time. It reduces your money's purchasing power, making long-term financial planning essential.
This calculator uses compound interest mathematics to model inflation’s effects. The key equations are:
Adjusted Future Value = Present Value × (1 + r)^tAdjusted Present Value = Future Value ÷ (1 + r)^t(1 + r_effective) = ∏(1 + r_i)^(1/n)Where r_i is the inflation rate for year i, and n is the number of years.
To preserve today's purchasing power, $324,340 will be required in 40 years.
Target price in year 3 to offset inflation: $1,259.71
Take control of your financial future — use this calculator now to make smarter money decisions.
| Year | Adjusted Value ($) |
|---|---|
| 1 | $1,050.00 |
| 2 | $1,102.50 |
| 3 | $1,157.63 |
| 4 | $1,215.51 |
| 5 | $1,276.28 |
| 10 (Long-Term Horizon) | $1,628.89 |
| 0% Inflation | $1,000.00 |
| -2% (Deflation) | $817.07 |
| 200% (Hyperinflation) | $59,049.00 |
| Input | Value |
|---|---|
| Current Amount | $1,000.00 |
| Annual Inflation Rate | 5% |
| Years | 10 |
| Future Value Required | $1,628.89 |
| Total Purchasing Power Loss | −62.89% |