Inflation Calculator
Calculate the impact of inflation on purchasing power. See how inflation reduces the value of money over time with our free inflation calculator.
Our Inflation Calculator helps you understand how inflation erodes the purchasing power of your money over time. By calculating the future value of money and its equivalent purchasing power, you can make better financial decisions and plan for inflation's impact on your savings, investments, and retirement goals.
Enter inflation details to see the impact on your money
Understanding Inflation
Inflation is the rate at which the general level of prices for goods and services rises, and subsequently, purchasing power falls. When inflation occurs, each unit of currency buys fewer goods and services, effectively reducing the value of money over time.
Effects of Inflation
- • Reduces purchasing power of money
- • Increases cost of living over time
- • Erodes value of cash savings
- • Affects fixed-income investments
Inflation Protection
- • Invest in inflation-resistant assets
- • Consider Treasury Inflation-Protected Securities
- • Diversify with real assets
- • Regular income adjustments
The average inflation rate in the United States has been approximately 2-3% per year over the long term. However, inflation rates can vary significantly by country and time period. This calculator uses the inflation rate you provide to estimate future purchasing power.