Inflation Calculator
Calculate how inflation affects the purchasing power of your money over time.
$
%
Future Value Needed
$13,439
to match today's $10,000
The Inflation Formula
Future Value = Present × (1 + rate)^years
Real Value = Present ÷ (1 + rate)^years
Real Value = Present ÷ (1 + rate)^years
Historical US Inflation Rates
| Period | Avg Annual Inflation |
|---|---|
| 2020 | 1.2% |
| 2021 | 4.7% |
| 2022 | 8.0% |
| 2023 | 4.1% |
| Long-term average | ~3% |
$10,000 Over 10 Years at Different Rates
| Rate | Future Value Needed | Purchasing Power Lost |
|---|---|---|
| 2% | $12,190 | $2,190 |
| 3% | $13,439 | $3,439 |
| 5% | $16,289 | $6,289 |
| 8% | $21,589 | $11,589 |
Disclaimer: Estimates for educational purposes only. Not financial advice.
Frequently Asked Questions
How does inflation affect my money?
Inflation reduces purchasing power over time. If inflation averages 3% per year, $100 today will only buy about $74 worth of goods in 10 years. This calculator shows the real impact.
How is inflation calculated?
Future Value = Present × (1 + rate)^years. For $1000 at 3% inflation for 10 years: 1000 × 1.03^10 = $1,344. That's the amount you'd need to match today's purchasing power.
What is the average US inflation rate?
The long-term US average is about 3% per year. Recent years have seen higher rates (7-8% in 2022). The Federal Reserve targets 2% annual inflation.
How do I protect against inflation?
Invest in assets that outpace inflation: stocks, real estate, and inflation-protected bonds (TIPS). Savings accounts typically lose purchasing power to inflation over time.