Inflation Calculator
See what any amount will cost in future years at a steady inflation rate.
What it does
Inflation measures how the general price level rises over time. When it runs at 3%, a basket costing $1,000 today costs about $1,030 next year, and the year after that rise applies to the new higher base, which is why long spans surprise people.
The tool above projects that path from three inputs: the price today, a steady yearly rate, and the number of years. It returns the future cost, the dollar increase, and the total percent rise so both the price and the erosion read at once.
The rate you pick decides everything. Official CPI series from the Bureau of Labor Statistics track urban consumer prices back to 1913, and the FRED database publishes the same index for charting. Past decades averaged near 2 to 4% in the US, with sharp spikes above that around energy shocks.
Treat every projection as a sketch at a fixed rate. Real inflation jumps year to year, wages and interest respond in turn, and personal baskets differ from the average because housing, food, and fuel weights vary by household.
How to use
- Enter the price or budget in today money.
- Enter the yearly inflation rate you want to test, such as 3.
- Enter how many years ahead to project.
- Read the future cost first, then the dollar and percent increase.
- Rerun at one point above and below to see the range before planning.
Formula
- present
- Price or budget in today money.
- rate
- Steady yearly inflation in percent.
- years
- Full years the rate compounds.
A zero rate returns the same amount with zero increase. Negative rates (deflation) are outside this page; enter 0 as the floor and model falling prices separately.
Worked example
Example: $1,000 at 3% for 10 years
Present 1000, rate 3%, span 10 years.
- Factor per year: 1 + 0.03 = 1.03.
- Ten year factor: 1.03^10 = 1.343916.
- Future cost: 1000 x 1.343916 = $1,343.92.
- Increase: 1343.92 - 1000 = $343.92.
- Total rise: 343.92 / 1000 = 34.39%. Tool shows $1,343.92, $343.92, 34.39%.
Reference table
| Yearly rate | Future cost | Total rise |
|---|---|---|
| 2% | $1,218.99 | 21.90% |
| 3% | $1,343.92 | 34.39% |
| 5% | $1,628.89 | 62.89% |
| 8% | $2,158.92 | 115.89% |
Limits
- Steady rate assumed. Real inflation varies every year.
- Average basket used. Your food, rent, and fuel mix will differ.
- Ignores wage growth and interest that offset part of the erosion.
- Long spans carry the most error, so refresh the rate yearly.
Common mistakes
- Adding rate times years linearly (3% x 10 = 30%) instead of compounding to 34.39%.
- Using one spike year as the forever rate.
- Confusing nominal and real values when comparing salaries across time.
- Applying national CPI to a purely local cost like city rent.
- Reading the projection as a price promise instead of a rate sketch.
Try it yourself
Quick checks. Answers sit tucked under each question.
$500 at 2% for 5 years?
500 x 1.02^5 = 500 x 1.104081 = $552.04, up $52.04 (10.41%).
$100 at 5% for 10 years?
100 x 1.628895 = $162.89, up $62.89.
Rule check: double at 7%?
About 10.2 years by 72/7, since 1.07^10.2 is near 2.
Questions
How is future cost calculated?
Present times (1 + rate) to the years. At 3% for 10 years the factor is 1.3439.
Where do I find past inflation?
The BLS CPI series and FRED charts publish monthly and yearly US inflation back many decades.
What rate should I assume?
Near 2 to 3% for calm planning, with extra passes at 4 or 5% to stress test.
Does inflation compound?
Yes. Each year rise applies to the prior year price, so 3% for 10 years totals 34.39%, not 30%.
What is buying power loss?
The mirror view: at 3% for 10 years, $1,000 buys what about $744 bought at the start (1000 / 1.3439).
CPI vs personal inflation?
CPI weights an average urban basket. Renters, drivers, and parents each feel a different mix.