Inflation Impact Calculator
See how inflation erodes the purchasing power of money over time. Enter an amount, inflation rate, and years to get the real value of your money in today's dollars and a chart showing purchasing power declining year by year.
How to use this tool
- Enter amount today, annual inflation rate and years in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your future purchasing power (today's $) and the full breakdown beneath it.
Inflation is the silent tax. Even at 3%, the purchasing power of $10,000 falls to about $5,500 over 20 years. Understanding this erosion explains why investing — not just saving — is essential for long-term wealth.
Formula: Real Value = Amount ÷ (1 + rate)years
Frequently asked questions
- What inflation rate should I use?
- US CPI has averaged roughly 3% over the past century, and around 2.5% since the 1990s. For conservative planning use 3-4%; for optimistic scenarios, 2%.
- How do I protect against inflation?
- Invest in assets that historically outpace inflation: equities, real estate, TIPS (Treasury Inflation-Protected Securities), and I-bonds.