Calculate the future purchasing power of money adjusted for inflation
This inflation calculator shows how inflation erodes the purchasing power of your money over time. Enter an amount and a time period to see what that money will be worth in the future — or what it was worth in the past — after adjusting for inflation. The calculator also shows the total amount lost to inflation and provides a year-by-year breakdown.
Inflation is the gradual increase in prices that reduces the real value of money. Understanding its impact is essential for long-term financial planning, from saving for retirement to setting realistic investment goals.
Enter the starting amount of money you want to analyze, the annual inflation rate (historical average is about 3%), the start year, and the end year. The calculator will compute the inflation-adjusted future value, the amount and percentage of purchasing power lost, and display a detailed year-by-year table showing the declining value.
The historical average annual inflation rate in the United States is approximately 3.3% over the past century. The Federal Reserve targets a 2% rate. For conservative planning, use 3%. You can adjust the rate to test different scenarios.
Inflation significantly reduces the purchasing power of fixed retirement savings. At 3% annual inflation, $1,000,000 today will have the purchasing power of only about $412,000 in 30 years. This is why it's important to invest in assets that can outpace inflation, such as stocks, real estate, or inflation-protected securities like TIPS.