Inflation Calculator: Future Cost and Purchasing Power
Enter an amount, the yearly inflation rate and the number of years to see its future cost and its purchasing power.
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Formula
factor = (1 + inflation rate)^years
- Future cost of the same goods:
amount × factor - Purchasing power of the amount:
amount ÷ factor - Total price change:
(factor − 1) × 100
Worked example
100 today, 3% inflation a year, 10 years:
1.03^10 = 1.3439- The same goods cost 100 × 1.3439 = 134.39
- 100 then buys only what 100 ÷ 1.3439 = 74.41 buys today
- Prices rose 34.39% in total.
Frequently asked questions
How is the future cost calculated?
Future cost = amount × (1 + rate)^years. Something costing 100 today at 3% inflation costs 134.39 after 10 years.
What is purchasing power?
It is what money can buy. After 10 years of 3% inflation, 100 buys only what 74.41 buys today, because 100 ÷ 1.03^10 is 74.41.
Can I use a negative rate?
Yes. A negative rate models falling prices (deflation). At −2% for one year, an item costing 1,000 costs 980.
Which inflation rate should I use?
Use your country's official figure for the past, or an assumed long-run average for planning. Rates vary a lot between years and between categories of goods.