Inflation Calculator
Inflation Terms
Calculation Results
| Adjusted Amount | — |
|---|---|
| Years Applied | — |
| Inflation Rate Used | — |
What Does Inflation Do to Purchasing Power?
Inflation erodes purchasing power over time: the same basket of goods tends to cost more in the future and required less money in the past. This calculator applies a constant annual inflation rate to estimate those shifts.
The Inflation Formula
Future value (what today's amount would need to match purchasing power after inflation):
FV = PV × (1 + r)n
Past value (what today's amount was equivalent to in an earlier year) divides by the same growth factor: PV = FV ÷ (1 + r)n. Here r is the annual inflation rate as a decimal and n is the number of years.
How to Use the Two Modes
- Future Value — Enter an amount in today's dollars and see what you would likely need after n years of inflation.
- Past Value — Enter an amount in today's dollars and see what it would have been worth n years ago at the same inflation rate.
FAQ
Should I use CPI or a custom rate? Official consumer price indexes vary by country and basket. Use a rate that matches your planning horizon; this tool does not fetch live CPI data.
Can I use start and end years? Yes. If both years are provided, the calculator uses their difference as n instead of the years field.