See how inflation raises prices and cuts the buying power of money over the years.
Quick answer
Something that costs $1,000 today would cost about $1,343.92 in 10 years at 3% inflation. Put another way, $1,000 would buy only what $744.09 buys today.
| Years | Price of a $1,000 item | Buying power of $1,000 |
|---|---|---|
| 5 | $1,159.27 | $862.61 |
| 10 | $1,343.92 | $744.09 |
| 20 | $1,806.11 | $553.68 |
| 30 | $2,427.26 | $411.99 |
These figures are computed with the same formulas as the Inflation Calculator above. Change the inputs in the tool to see your own result. For a full table, see Compound interest table and Inflation table.
The Inflation Calculator shows what a constant yearly inflation rate does to prices and to the value of your money. Find what something that costs an amount today will cost in the future, how much less your money will buy after a number of years, or work out the average yearly inflation rate from two prices. A chart and a year-by-year table show how the effect builds up. You choose the inflation rate, so it works for any country and any scenario.
Made for everyone. Typical uses:
At 3% inflation a $1,000 basket of goods costs $1,343.92 after 10 years (a 34.4% rise). Put the other way, $1,000 in cash left untouched for 10 years will only buy what $744.09 buys today. If a price rose from $100 to $134.39 over 10 years, the average inflation rate was 3.00% a year. The Rule of 72 says prices double in about 24 years at 3%.
The calculator assumes one constant inflation rate for every year. Actual inflation varies each year and between categories such as housing, food and healthcare, and it does not include official historical price indexes. Treat results as planning estimates.
Accuracy: Formulas follow standard published methods and are checked against worked reference examples. Results are estimates based on the values you enter and do not replace advice from a qualified professional.
Expert Tip
For long-term planning, run the calculation at 2%, 3% and 5% to see a realistic range instead of relying on one number.
Inflation is the general rise in prices over time. When prices rise, each unit of money buys less, so cash loses purchasing power even though its number stays the same. At 3 percent a year, something that costs $1,000 today costs $1,343.92 in ten years, $1,806.11 in twenty and $2,427.26 in thirty. Put the other way, $1,000 held in cash for ten years buys only what $744.09 buys today, and after thirty years what $411.99 buys today.
The change is gradual, which is why it is easy to ignore. A 3 percent yearly rise is invisible from one month to the next, but over a career or a retirement it takes a large share of your savings' real value.
The calculator has three modes because there are three different questions.
The tool does not include historical price indexes, because the right index depends on the country and the goods you care about. You enter the rate. Many central banks target about 2 percent a year. For long-term planning, running scenarios at 2, 3 and 5 percent gives a realistic range: $1,000 grows to $1,218.99, $1,343.92 and $1,628.89 over ten years at those rates.
To use real historical data, look up the official consumer price index for the two years you care about, divide the later index by the earlier one to get the price ratio, and use the "Find the inflation rate" mode with the ratio to get the average yearly rate. Your own cost of living can differ from the official average, especially for housing, healthcare and education, so consider using a higher rate for those.
A return quoted in money terms is a nominal return. What matters for your buying power is the real return, which subtracts inflation. If your savings earn 5 percent and inflation is 3 percent, the real return is about 1.94 percent, calculated exactly as (1.05 ÷ 1.03) − 1. Over 20 years, $10,000 at 5 percent nominal grows to $26,532.98, but in today's purchasing power it is only worth $14,690.67.
This is why an account that pays less than inflation loses value even while the balance grows. Compare any interest rate you are offered with inflation before deciding it is good, and see the effect of your own rate with the Compound Interest Calculator and the CAGR Calculator.
For any goal more than a few years away, adjust the target. If you need $50,000 in today's money in fifteen years and inflation averages 3 percent, you will need $77,898 at that time. Use the result as the goal in the Savings Goal Calculator. If you are negotiating a salary or a contract, remember that the same idea applies: a pay rise below inflation is a pay cut in real terms, so check your figures with the Salary Calculator.
The calculator assumes a constant yearly rate, which real inflation never is, and it does not represent the price change of any one product. Use it for planning and comparisons. The article how inflation erodes savings explains real returns and gives more examples, and the Percentage Calculator helps with the arithmetic. Nothing you enter is stored or sent.
See how much a fixed amount of money loses to inflation over 10, 20 and 30 years, what a real return is, and practical ways to plan around rising prices.
Compound interest explained step by step: the formula, why time matters more than the rate, how monthly deposits change the result, and how to test your own numbers.
What compound annual growth rate is, how to calculate it, why it beats the average of yearly returns, and how to use it for investments, revenue and traffic.
Reference table with CSV download.
Reference table with CSV download.
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