Inflation Calculator
Calculate the real value of money, purchasing power change, and inflation-adjusted future costs
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Frequently Asked Questions
Inflation is the rate at which the general level of prices for goods and services rises over time, reducing the purchasing power of money. If inflation is 6% per year, something that costs $100 today will cost $106 next year. Central banks typically target 2–3% annual inflation in developed economies, while developing countries often see higher rates of 5–10%.
The formula is: FV = PV × (1 + r)^n, where PV is the present value (initial amount), r is the annual inflation rate as a decimal, and n is the number of years. For example, $10,000 at 6% inflation for 10 years = $10,000 × (1.06)^10 = $17,908.
The real value (or purchasing power) tells you what a past or future amount is worth in today's money. If someone had $10,000 ten years ago and inflation averaged 6%, that $10,000 had the same purchasing power as $17,908 today. Conversely, $10,000 today is worth only $5,584 in real terms compared to what it would buy 10 years ago.
The Rule of 70 is a quick way to estimate how long it takes for prices to double due to inflation. Simply divide 70 by the annual inflation rate: Doubling time ≈ 70 / inflation rate. At 7% inflation, prices double in approximately 10 years. At 3.5%, it takes about 20 years. This rule also applies to investment growth.
If your savings account earns 3% interest but inflation is 6%, your money is effectively losing 3% of purchasing power per year (negative real return). To protect savings, investments must earn returns that exceed inflation. Equities, real estate, and inflation-linked bonds (TIPS) are common hedges against inflation.
Inflation rates vary widely. Developed economies (USA, Europe, Japan) typically target 2–3%. India, Bangladesh, Pakistan often see 5–8%. Countries experiencing economic instability can see 10–50%+. The CPI (Consumer Price Index) is the most commonly used measure of inflation. You can look up historical CPI data on your country's central bank or statistics bureau website.
About This Inflation Calculator
This free Inflation Calculator has three modes: Future Value — find out what an amount today will cost in the future at a given inflation rate; Past Value (Real Worth) — find the inflation-adjusted value of a past amount in today's money; and Find Inflation Rate — given an initial and final amount over a number of years, calculate the implied average annual inflation rate. All modes show a year-by-year breakdown table.
Future Value of $10,000 at Various Rates
| Rate | 10 years | 20 years | 30 years |
|---|---|---|---|
| 2% | $12,190 | $14,859 | $18,114 |
| 4% | $14,802 | $21,911 | $32,434 |
| 6% | $17,908 | $32,071 | $57,435 |
| 8% | $21,589 | $46,610 | $100,627 |
| 10% | $25,937 | $67,275 | $174,494 |
Doubling Time (Rule of 70)
| Inflation Rate | Years to Double |
|---|---|
| 2% | 35 years |
| 3% | 23 years |
| 4% | 17.5 years |
| 6% | 11.7 years |
| 8% | 8.75 years |
| 10% | 7 years |
| 12% | 5.8 years |
