UnitConv

Inflation Calculator

See how inflation changes the value of money over time

Equivalent future amount
1,218,994

1,000,000 keeping pace with inflation would need to be 1,218,994 after 10 years.

Equivalent future amount
1,218,994
needed to match today's buying power
Future buying power
820,348
what the amount will really be worth
Total inflation
21.9%

Inflation formula

FV = PV × (1 + i)^n
PV = FV / (1 + i)^n

Inflation compounds each year. The future value is the amount needed later to keep the same buying power; the purchasing power is what a fixed amount will really be worth after the period.

What is an inflation calculator?

An inflation calculator shows how the value of money changes over time when prices rise. Because a fixed sum buys less as prices climb, the same amount of money is worth more in the past and less in the future. This tool takes a starting amount, a number of years and an average annual inflation rate, then reports two things: the equivalent future amount — how much money you would need later to buy what the original sum buys today — and the future purchasing power — what that fixed amount will really be worth after the period, expressed in today's money. It is useful for understanding why prices seem to keep rising, for setting savings goals, and for comparing amounts of money across different years.

How to use it

1. Enter the amount of money. 2. Enter the number of years over which inflation applies. 3. Enter the average annual inflation rate as a percentage. The calculator shows the equivalent future amount (to keep the same buying power), the real future purchasing power of that fixed amount, and the total cumulative inflation over the period.

Formula and definition

Inflation compounds each year, so the equivalent future amount is: FV = PV × (1 + i)^n The real purchasing power of a fixed amount after the period is the inverse: PV = FV / (1 + i)^n Here PV is the present amount, i is the annual inflation rate (as a decimal) and n is the number of years. For example, 1,000,000 at 2% inflation for 10 years has an equivalent future value of about 1,218,994 — meaning you would need that much later to buy what 1,000,000 buys today.

Reading your results

The equivalent future amount answers "how much money will I need later to match today's buying power?" The future purchasing power answers "if I keep this exact amount, what will it really be worth?" — and it is always less than the starting amount when inflation is positive. The total inflation figure is the cumulative price rise over the whole period, not the annual rate. Keep in mind that real inflation varies year to year and differs by country and by the basket of goods you buy; this tool assumes a single constant average rate, so treat the results as illustrative rather than exact.

Frequently asked questions

What inflation rate should I use? ▾

Many people use a long-run average such as 2–3% a year, which is a common central-bank target in several economies, but actual inflation varies widely by country and period. Use a rate that reflects the time and place you care about.

What is the difference between future value and purchasing power? ▾

Future value is the larger nominal amount you would need later to buy the same things. Purchasing power is the smaller real value of a fixed amount after inflation. They are inverses of each other.

Can I use this to compare prices from different years? ▾

Yes. Enter the older amount, the number of years between then and now, and an average inflation rate to estimate the equivalent amount in today's money. For precise historical comparisons, use official price-index data.

Does this account for interest or investment returns? ▾

No. This calculator models inflation only. To see whether savings keep pace, compare your investment return against the inflation rate — a real return is roughly the return minus inflation.

This calculator is for general educational purposes only and is not financial advice. It assumes a single constant inflation rate; real inflation varies by year, country and spending pattern. For official figures, consult published consumer price index data.