📉 Inflation Calculator
See how inflation erodes the purchasing power of your money over time. A dollar today is worth more than a dollar tomorrow — find out exactly how much more.
How to Use This Calculator
- Enter an Amount — any dollar amount: salary, savings, retirement target.
- Set the Inflation Rate — 2-3% is the U.S. historical average. Use 4-5% for conservative planning.
- Choose Years — longer periods show the dramatic cumulative effect of even "low" inflation.
- Click Calculate — see what that money will actually be worth in the future.
Example: The $10,000 That Shrinks
You put $10,000 under your mattress and leave it for 20 years. Inflation averages 3% per year.
📉 The Result
- Future purchasing power: ~$5,537 in today dollars
- Lost to inflation: ~$4,463 — nearly half!
- This is why "cash under the mattress" is a losing strategy.
- To beat inflation, your money must earn at least 3% per year just to break even.
Why Use This Calculator?
See exactly how much purchasing power your money loses — it is more than you think.
Adjust retirement and savings goals for inflation.
A 5% savings account at 3% inflation only yields 2% real return. This is why investing matters.
Calculator inputs stay on this device; advertising services may process separate usage data.
Common Mistakes
❌ Using CPI for personal planning. Your personal inflation rate may be higher if you spend heavily on healthcare or housing — categories that rise faster than the CPI average.
❌ Ignoring inflation in retirement. If you plan to retire on $60,000/year today, in 25 years you will need about $126,000/year at 3% inflation to maintain the same lifestyle.
❌ Thinking "low inflation" means no problem. Even 2% inflation cuts purchasing power by 33% over 20 years.