Inflation Calculator
See exactly how inflation erodes the value of money. Compare today's purchasing power to the future, and find the real value of long-term savings.
Long-term US average is ~3%.
How it works
- 1Enter an amount
Pick a dollar figure you want to compare across time — savings, salary, cost of an item.
- 2Set the time horizon
How many years into the future you want to project.
- 3Choose an inflation rate
3% is the long-term US average. Use higher rates for conservative planning.
Inflation is the silent tax on cash. A dollar in 1990 had the buying power of about $2.40 today — meaning anyone who held cash for 35 years lost more than half its real value. The same erosion is happening right now to anyone keeping large sums in low-yield accounts.
There are two ways to look at inflation. First: how much will today's prices be in the future? At 3% inflation, a $30,000 car today will cost about $54,000 in 20 years. Second: how much will today's dollars buy in the future? $30,000 today will buy only about $16,600 worth of stuff in 20 years.
This is why long-term savings need to outpace inflation. If your savings account pays 0.5% but inflation runs 3%, you're losing 2.5% of real purchasing power every year — guaranteed. A $100,000 nest egg becomes worth $61,000 (in today's dollars) after 20 years if it earns nothing.
Stocks have historically returned about 7% after inflation (10% nominal minus 3% inflation). That's the 'real return' — what actually buys more goods and services. Bonds typically deliver 1–2% real returns. Cash usually delivers negative real returns over long periods.
Use this calculator to plan retirement, evaluate whether a salary increase is real or just keeping up with inflation, and see how an emergency fund's purchasing power changes over time.
Example scenarios
Equivalent to about $90k future dollars to maintain the same standard of living.
Buying power falls to about $412k by year 30 if invested at 0%.
Costs about $543k in 20 years just to keep up with inflation.
Common questions
What is inflation?
Inflation is the general rise in prices over time, which means each dollar buys less than before. The US has averaged about 3% annual inflation over the past century, though it varies widely year to year.
What inflation rate should I use?
For long-term planning, 2.5–3% is the historical US average. Use 3.5–4% for a conservative estimate, or match the rate to a specific period (the 1970s averaged 7.4%; 2010–2020 averaged 1.8%).
How does inflation affect my savings?
Cash sitting in a 0.5% savings account loses purchasing power every year inflation runs higher. To preserve real wealth, your money needs to grow at least as fast as inflation — which is why long-term savings usually go into investments, not just savings accounts.
What's the difference between nominal and real returns?
Nominal returns are what you see on a statement (e.g. 8% portfolio growth). Real returns subtract inflation (8% − 3% inflation = 5% real growth). Always think in real terms for long-term planning.
How much will $1 today be worth in 20 years?
At 3% inflation, $1 today has the buying power of about $0.55 in 20 years. Or flipped: you'd need $1.81 in 20 years to buy what $1 buys today.