Inflation Calculator
Calculate inflation's impact on purchasing power.
How to Do It Manually
Inflation shows how purchasing power decreases over time. Calculate future cost of an item or past equivalent cost.
Future Cost = Current Cost × (1 + annual inflation rate)^years
- Enter current/past cost.
- Enter inflation rate (US average: 3–4%).
- Calculate: future cost = current × (1 + rate)^years.
Frequently Asked Questions
What's a normal inflation rate?
The Federal Reserve targets 2% annually. Higher rates erode purchasing power.
How does inflation affect savings?
If inflation is 3% and your savings earns 1%, you're losing purchasing power. Invest to outpace inflation.