Inflation Calculator
See how inflation affects your purchasing power.
Future Value Required
$0.00
To match current purchasing power
About Inflation Calculator
Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling. This calculator helps you understand how much money you will need in the future to buy the same things you can buy today, or what your money was worth in the past.
Why It Matters
If you are saving for retirement or a long-term goal, simply saving cash under your mattress won't work because its value erodes over time. You need your investments to grow at a rate equal to or higher than inflation to maintain your standard of living.
Example
If you have $1,000 today and the inflation rate is 3%, in 10 years you would need approximately $1,343 to purchase the same amount of goods. This illustrates why investing is crucial for long-term financial health.