See why cash loses value over time: what costs this much today will cost more later at a given inflation rate.
How the Inflation Calculator works
The calculator grows a cost at the inflation rate over time: Future cost = Amount × (1 + i)ⁿ, showing how much purchasing power is lost.
Example calculation
$10,000 at 3% inflation for 20 years will cost about $18,061 — roughly $8,000 of lost purchasing power.
Tips for using the Inflation Calculator
- Long-term inflation often averages 2–3%.
- Hold assets that historically outpace inflation.
- Always plan retirement in inflation-adjusted terms.
Inflation Calculator — frequently asked questions
- Typical inflation?
- Long-term averages are often around 2–3% per year, but it spikes in some periods.
- How to beat it?
- Hold assets that historically outpace inflation, such as diversified equities.
- How do I beat inflation?
- Invest in assets such as diversified equities that have historically grown faster than prices.
- Why does cash lose value?
- Idle cash earns little while prices rise, so it buys less over time.
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