Inflation Calculator
Enter an amount, an inflation rate and a number of years to see what your money will buy.
Results
- Price of the same basket later
- What your money will buy then
- Total price increase
- Loss of purchasing power
Inflation is the general rise in prices. As prices climb, the same money buys less — its purchasing power falls.
The calculator answers two questions: what will a basket that costs a given amount today cost in a number of years, and how much will today’s money be able to buy by then?
How to calculate Inflation
- Enter the amount today.
- Enter the annual inflation rate you expect.
- Enter the number of years and read the future price and purchasing power.
Inflation formula
Future price = amount × (1 + inflation)^yearsPurchasing power = amount ÷ (1 + inflation)^yearsTotal increase = (1 + inflation)^years − 1
Inflation example
A basket costing 1,000 today costs 1,610.51 in 5 years at 10% inflation. The purchasing power of the same 1,000 falls to 620.92 — a loss of 37.9%.
Inflation: common questions
Is 10% inflation for 5 years a 50% rise?
No. Inflation compounds: each year’s increase applies to the previous year’s prices. Five years at 10% is a 61% rise.
What if my pay rise is below inflation?
Your pay goes up in cash terms but buys less. The real change is roughly the pay rise minus inflation.
Does this use official inflation data?
No. You enter the rate yourself, so you can use a published figure for past years or your own forecast for the future.