Inflation Calculator: Future Prices and Buying Power

What this calculator can help you understand

The calculator answers two related questions:

What will something cost later? Enter today’s cost, an inflation rate and a number of years to estimate the future price, and how much more that is in dollars and percent.
What will my money buy later? Enter an amount, the interest it earns, an inflation rate and the years, to compare the balance on your statement with its buying power in today’s dollars.

It’s an estimate based on a steady inflation rate. Real inflation changes from year to year, so treat the result as a range to plan around, not a prediction.

When it’s useful

When planning for a future expense. Tuition, a car or a regular bill will likely cost more by the time you pay it.
When checking whether savings keep up. If cash earns less than inflation, its buying power falls even though the balance never moves.
When thinking about income. A raise smaller than inflation can still mean you can afford less than before.
When setting long-term goals. A goal set in today’s dollars may need a larger number in future dollars.

Who it’s for

Savers keeping cash in checking or low-interest savings accounts.
People planning large purchases a few years ahead.
Anyone budgeting for rising costs, such as rent, groceries or insurance.
Retirement planners who want to think in today’s dollars when picturing future spending.

What to enter

Input	What it means	Where to find it
Cost today, or amount you have	The price of something now, or the money you have now	A recent bill, a quote, or your account balance
Inflation per year	The yearly rise in prices you want to assume	An assumption; try more than one
Years	How far ahead to look	Your timeline
Interest the money earns (second mode only)	The yearly rate your savings earn	Your account’s APY

How to use it

Choose your question: what something will cost later, or what your money will buy later.
Enter the cost or amount you have today.
Enter an inflation rate. If you’re unsure, start with 3% and try 2% and 4% too.
Enter the number of years. In the second mode, also enter the interest your money earns.
Read the main result first. In the first mode, it’s the future cost; in the second, it’s what your money would buy in today’s dollars.
Change the inflation rate or the interest rate to see how sensitive the result is.

Understanding your results

When projecting a cost:

Cost in the future is today’s cost × (1 + inflation)ʸᵉᵃʳˢ.
Increase in dollars and percent shows how much more the same thing would cost.

When projecting your money:

On your statement is what the balance would show after interest: amount × (1 + interest)ʸᵉᵃʳˢ.
What it buys, in today’s dollars adjusts that balance for inflation: amount × ((1 + interest) ÷ (1 + inflation))ʸᵉᵃʳˢ.
Change in buying power compares that with what your money buys now. If interest is below inflation, buying power falls.

What it doesn’t show: changes in your own spending, taxes on interest, or year-to-year swings in inflation.

A worked example

A future cost. Suppose your household spends $800 a month on groceries and you want to know what that might become in 10 years if prices rise 3% a year (an assumption, not a forecast).

Inputs: cost today $800; inflation 3%; 10 years.
Method: $800 × 1.03¹⁰.
Result: about $1,075.13 a month, which is $275.13 more, an increase of 34.4%. Over a year, that’s $12,901.60 instead of $9,600, or $3,302 more.
What it means: to buy the same groceries, your food budget would need to grow by about a third over the decade.

Your savings. Now suppose you have $20,000 in a savings account earning 0.5% a year, with the same 3% inflation over 10 years.

Result: your statement would show about $21,023, but it would buy roughly what $15,643 buys today, a 21.8% loss in buying power.
For comparison: with no interest at all it would buy what $14,882 buys today (25.6% less), and at 4% it would grow to $29,605, worth about $22,029 in today’s dollars, 10.1% more buying power before taxes.

How the result changes

The $800 monthly grocery bill after 10 years at different inflation rates:

Inflation per year	Monthly cost in 10 years	Increase
2%	$975.20	$175.20
3%	$1,075.13	$275.13
4%	$1,184.20	$384.20
5%	$1,303.12	$503.12

Each extra percentage point adds up because inflation compounds: prices rise on top of earlier rises.

Common mistakes

Assuming one rate will hold. Inflation can be well above or below any single number for years at a time. Plan with a range.
Comparing future dollars with today’s dollars. A goal of $50,000 in 15 years is a smaller goal in today’s terms. Decide which kind of dollars you’re planning in.
Forgetting taxes. Interest that just matches inflation can still lose ground after tax.
Assuming your inflation is the headline rate. Your own costs may be rising faster or slower than the average.

What to do with your result

Check what your savings earn now. If it’s below inflation, compare rates with the high-yield savings calculator or browse today’s savings rates.
If you’re saving for a future purchase, raise the target to its estimated future cost and use the savings goal calculator.
Look at which of your expenses have risen most. That’s where your personal inflation rate comes from.
Revisit your estimates once a year, or when inflation news changes.

Limitations to keep in mind

The calculator assumes inflation and interest stay constant and compound once a year, and it leaves out taxes. It projects forward from an assumption rather than using historical price data. Official inflation figures are averages and may not match your own costs. The results are estimates, not forecasts or advice.

Frequently asked questions

What inflation rate should I use?

There’s no single right answer, because future inflation is unknown. The US Federal Reserve aims for inflation of 2% a year over the longer run, measured by a price index for personal consumption. Trying a few rates, such as 2%, 3% and 4%, shows a range rather than one guess.

Where does official US inflation data come from?

The Bureau of Labor Statistics publishes the Consumer Price Index (CPI) every month. The CPI for All Urban Consumers (CPI-U) is the most widely quoted measure of how consumer prices change.

Why does my own inflation feel higher than the official rate?

Official measures average across a typical basket of goods and services. If more of your budget goes to things whose prices are rising faster, such as rent or insurance in some areas, your personal rate can be higher than the headline figure, or lower if the opposite is true.

How long does it take for prices to double?

At 3% a year, prices double in about 23.4 years. The Rule of 72 gives a quick estimate: 72 ÷ 3 = 24 years.

Does this include taxes on interest?

No. If your savings earn interest, tax on that interest would reduce what you keep, making it harder to stay ahead of inflation.

Can I use this to compare prices from past years?

This calculator projects forward with a constant rate you choose. For historical comparisons, the Bureau of Labor Statistics offers a CPI inflation calculator based on actual published data.

Inflation calculator: see what prices, and your savings, could look like in the future