Inflation Calculator

About this inflation calculator

Inflation is the general rise in prices over time, which means each dollar buys a little less every year. Even moderate inflation compounds: at 3% a year, prices rise by about a third in a decade. That matters for retirement planning, salary negotiations and long-term savings.

This calculator uses an average annual rate you choose to show two things: what today's goods will cost in the future, and what a fixed amount of money will be worth in today's terms.

How to use the Inflation Calculator

1. Enter an amount in today's dollars.
2. Enter an average annual inflation rate (the long-run US average has been roughly 3%).
3. Enter the number of years.
4. Read the future cost and the future buying power.

The inflation formula

Future cost = Amount × (1 + rate)^years

Buying power is the reverse: Amount ÷ (1 + rate)^years. This uses a constant average rate; actual inflation varies year to year, and official historical figures come from the Consumer Price Index (CPI) published by the U.S. Bureau of Labor Statistics.

Worked example

At 3% average inflation, a $100 grocery bill today would cost about $134.39 in 10 years, and $100 kept in cash would buy only about $74.41 worth of today's goods.

Tips for better results

• For historical comparisons between specific years, use the official BLS CPI data rather than an average rate.
• Compare savings rates to inflation — earning 2% when inflation is 3% means your buying power is shrinking.

Frequently asked questions

This calculator provides estimates for planning only and is not financial advice. Confirm exact figures with your lender or a licensed professional.

Last reviewed: October 2026 · Results are calculated in your browser.