Inflation Calculator
See what today's money could buy in the future, and how inflation reduces your purchasing power.
What inflation does to your money
Inflation raises prices over time, so each unit of money buys less. At 3% a year prices double roughly every 24 years. Cash that earns less than inflation loses real value.
Protecting your purchasing power
Investments that tend to grow faster than inflation, such as diversified funds, help over long periods. Some governments also offer inflation-linked bonds.
Worked example
Last reviewed November 2026. Formulas are standard and shown in the sections above; results are estimates.
Tips and common mistakes
- Compare your savings rate with inflation to see the real return.
- Use realistic long-term averages, not just this year's figure.
- Index your goals, such as retirement income, to inflation.
Learn more
Frequently asked questions
What inflation rate should I use?
Many people use 2–3% for long-term planning, but check your country's recent average.
Is this historical?
No. It projects a constant future rate.
Why does value fall?
Because prices rise while the amount of money stays the same.
Money guides for this topic
All guides →Compound Interest Explained (and Why Starting Early Wins)
How compound interest works, the rule of 72, and a simple example showing why time matters most.
Read guide →Real Return: What Fees, Tax and Inflation Take
Why a 7% headline return can feel much smaller, and how to measure growth in today's money after costs.
Read guide →Investing for Beginners: A Simple Plan with the Numbers
A plain-English starter plan for investing: low-cost index funds, regular contributions and why fees matter.
Read guide →Related calculators
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Open calculator →CAGR Calculator
Calculate compound annual growth rate for an investment, business or any value.
Open calculator →Results are estimates and not financial advice.