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Inflation Calculator

Estimate a purchase's future cost and money's purchasing power at an assumed constant annual inflation rate.

Future cost
1,102.5
Purchasing power of the original amount
907.03
Price change
10.25 %

How the calculation works

Future cost = current cost × (1 + inflation/100)^years. Purchasing power of a fixed amount = amount/(1 + inflation/100)^years.

Inputs

  • Current amount
  • Annual inflation, %
  • Time horizon, years

Calculation details

For an amount of 1,000, inflation of 5%, and two years, future cost is 1,102.50 while the original 1,000 has purchasing power of about 907.03.

This is a scenario using your rate, not a historical CPI calculation. The default rate is an example, not a forecast. A negative rate models deflation.

Updated: 2026-10-02