Inflation Calculator
Estimate how an amount changes over time using an annual inflation rate. Includes nominal (future) value, real value, and a yearly breakdown.
Inflation Calculator tool
Use negative values to model deflation (e.g., −1).
Future value answers “how much will it cost later?”. Real value answers “what is a future amount worth today?”.
| Year | Multiplier | Nominal value | Real value (today) |
|---|
Informational only. This is a simplified estimate using a constant annual rate.
Inflation is typically modeled as compounding over time. With a constant annual rate r and a time horizon of t years, the multiplier is (1 + r)t. A 3% annual inflation rate for 10 years increases the price level by roughly (1.03)10.
Future value (nominal) estimates the amount in future dollars: FV = amount × (1 + r)t. This is useful for budgeting and “what will it cost later?” questions.
Real value discounts an amount back to today’s purchasing power: Real = amount ÷ (1 + r)t. This helps compare money across time on an apples-to-apples basis.
Examples
- $1,000 at 3% for 10 years → future value ≈ $1,343.92
- $1,000 at 3% for 10 years → real value today of $1,000 in 10 years ≈ $744.09
- Try 0% to see baseline behavior (no inflation impact)
FAQ
- What does an inflation calculator do?
It estimates how prices or purchasing power change over time using an annual inflation rate. You can convert a current amount to a future (inflated) amount, or compute the real value in today’s dollars.
- Is this CPI-accurate?
No. This tool uses a constant annual rate that you provide. Official CPI-based results vary by country, category, and time period.
- What is the difference between nominal and real value?
Nominal value includes inflation (future dollars). Real value adjusts for inflation (today’s purchasing power).
- What if inflation changes each year?
This tool assumes a constant rate. If rates vary, you can approximate with an average rate or calculate year-by-year externally.
- Can inflation be negative?
Yes. Negative inflation (deflation) can be modeled by entering a negative rate. Results are still an estimate.