Inflation Calculator
See how inflation erodes your purchasing power over time
Results
Future Purchasing Power
$7,440.94
Purchasing Power Loss
$2,559.06
Total Inflation
34.39%
Future Cost: What costs $10,000.00 today will cost $13,439.16 in 10 years
Purchasing Power Over Time
Inflation Protection Tips
- •Invest in assets that historically beat inflation
- •Consider Treasury Inflation-Protected Securities (TIPS)
- •Real estate often provides inflation protection
- •Review your investment strategy annually
How Inflation Calculation Works
This calculator shows how inflation erodes purchasing power over time. It uses the compound inflation formula to project future prices and the equivalent purchasing power of today's money. Understanding inflation is crucial for long-term financial planning.
Understanding Purchasing Power
Purchasing power is what your money can actually buy. When prices rise faster than your income or savings grow, you lose purchasing power. This calculator helps visualize why keeping money in low-yield accounts can actually cost you money in real terms over the long run.
Frequently Asked Questions
Inflation is the rate at which prices increase over time, reducing the purchasing power of money. If inflation is 3%, something that costs $100 today will cost $103 next year.