Inflation is the increase in prices over time, which reduces the value of money and affects purchasing power.

Inflation Calculator

Q: What inflation rate should I use?

Many people use 5–6% as an average long-term inflation rate but you are free to use any rate.

Q: How does inflation affect savings?

Inflation decreases the real value of your savings unless your return rate exceeds the inflation rate.

Calculate the future value of money and the impact of inflation on your purchasing power over time.

Amount

Inflation Rate (%)

Years

How This Inflation Calculator Helps You

Inflation reduces the purchasing power of money over time. This calculator shows how much money you will need in the future to match today's value. It helps you plan long-term goals like retirement, education, and wealth preservation.

Understand how fast inflation reduces money value.
Plan long-term savings and investments.
See real growth of your income after inflation.
Useful for retirement planning and wealth management.
Compare different inflation scenarios instantly.

Frequently Asked Questions

1. What is inflation and why does it matter?

Inflation increases prices over time, reducing the value of money. Your savings must grow faster than inflation to maintain purchasing power.

2. What inflation rate should I use?

Long-term inflation averages 5–6%, but it can vary depending on the economy. You are free to use any rate.

3. How does inflation affect savings?

Even if your savings grow, inflation lowers their real value unless your return rate is higher than the inflation rate.