Inflation calculator
What a dollar amount is worth in another year.
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How it's calculated
Inflation compounds like interest: at 3% a year, prices multiply by 1.03 every year, so after ten years they are 1.03 to the tenth power, about 34% higher. The same factor works both ways: multiply today’s price by it for the future cost, divide a future amount by it for its value in today’s money. Purchasing power lost is one minus the reciprocal, and the doubling time is the natural log of 2 over the log of the growth factor, which the rule of 72 approximates as 72 divided by the rate.
What will $100 be worth in 10 years?
At 3% inflation it buys what $74 buys today, and the things $100 buys today will cost about $134. At 2% the figures are $82 and $122; at 5%, $61 and $163. Small differences in the rate compound into large ones over a working life.
What inflation rate should I use for planning?
The Fed targets 2% and long-run US inflation has averaged about 3%; 2021–2023 ran 4–9%. Use 2.5–3% for a plan and test it at 4%. For specific costs use their own history: college tuition and healthcare have run 5–6%, electronics have fallen.
Why does inflation matter for savings?
Because a return below inflation is a loss in real terms. Cash at 1% while prices rise 3% loses about 2% of purchasing power a year, a fifth over a decade. Compare any interest rate or raise with the inflation rate before deciding whether it is really a gain.
Results are estimates for informational purposes only and are not financial, medical or legal advice.