You enter a dollar amount, an annual inflation rate, and a number of years. The tool applies compound growth — multiplying the amount by (1 + rate) raised to the power of years — to project the future nominal cost. It divides the same amount by that growth factor to show reduced purchasing power. Cumulative inflation is the growth factor minus one, expressed as a percentage. The calculation assumes a steady annual rate; real inflation fluctuates year to year.
The long-run U.S. average (CPI-U) has been roughly 3.0–3.5% per year since 1913. For conservative planning, 3% is a common default. For recent trends, check the BLS CPI data — annual inflation has ranged from about 1.2% to 9.1% in the 2020s alone.
No. The CPI measures an average basket of goods, but your personal inflation rate depends on what you spend on. Housing, healthcare, and education have historically inflated faster than electronics or clothing. Your effective rate may be higher or lower than the headline number.
If your savings earn less than the inflation rate, your money loses purchasing power over time. A savings account at 1% with 3% inflation means you lose about 2% of real value each year. This is why financial planners recommend growth investments that outpace inflation.
This calculator projects forward from any rate you choose. The U.S. Inflation calculator uses actual historical CPI data to show how prices changed between specific past years. Use this one for planning; use the U.S. version for historical lookups.
Estimate only. Results reflect your inputs and standard formulas — they are not financial, tax, legal, health, or investment advice. Verify important decisions with a qualified professional.