How to use the inflation calculator
- Choose what you want to see: the future cost of something you buy today, or the future buying power of an amount of money.
- Enter the amount and an average inflation rate, or pick one of the quick rates.
- Set how many years from now you want to look ahead.
- Add what your savings earn to see your real return after inflation.
The year-by-year table shows how the cost or buying power changes each year.
How inflation is calculated
Buying power = amount ÷ (1 + inflation)years
Real return = (1 + savings rate) ÷ (1 + inflation) − 1
The calculator uses one constant average rate. Real inflation changes from year to year and differs between categories such as housing, food and health care.
Example: 3% inflation over 10 years
| Question | Result |
|---|---|
| What will $100 of groceries cost? | $134.39 |
| What will $100 buy in today’s money? | $74.41 |
| How long until prices double? | About 24 years (72 ÷ 3) |
| Real return on savings earning 4% | About 0.97% a year |
Even moderate inflation adds up. At 3% a year, prices rise about a third in a decade, and money kept in cash loses about a quarter of its buying power.
What inflation rate should I use?
For long-term plans, many people test a few rates. The US Federal Reserve aims for inflation of 2% a year over the longer run, but actual inflation has often been higher or lower. Try a low, a middle and a high rate to see a range of outcomes.
Looking back instead? To find what a past amount is worth today, the US Bureau of Labor Statistics offers a historical CPI inflation calculator based on actual price data.
How to protect your money from inflation
- Keep only your emergency savings in cash, and look for a high-yield savings account.
- For long-term goals, investments such as diversified funds have historically outpaced inflation over long periods, though with ups and downs. See our guide to index funds and ETFs.
- Ask for raises that at least match inflation. Our salary increase calculator compares your raise with rising prices.
- Plan for higher costs in retirement with our retirement calculator.
Frequently asked questions
What is inflation?
Inflation is the general rise in prices over time. As prices rise, each unit of money buys a little less.
How is inflation measured in the US?
The most widely quoted measure is the Consumer Price Index (CPI) from the Bureau of Labor Statistics. The Federal Reserve’s 2% goal uses a related measure, the PCE price index.
Does this calculator use historical inflation data?
No. It projects the future using the average rate you enter. For past prices, use the BLS CPI inflation calculator linked above.
Is my savings account beating inflation?
Compare your interest rate with inflation. If your account pays 4% and inflation is 3%, your real return is about 1% a year. Use our compound interest calculator to see the growth.
Related calculators and guides
Projections use a constant average rate and are estimates for illustration, not financial advice.