Inflation calculator
After 20 years of 3% inflation, what $1,000 buys today will cost $1,806, and $1,000 held in cash will buy only $554 worth of today's goods, a loss of 44.63%.
Free, runs in your browser, nothing is sent anywhere. Move the sliders to try your own numbers.
The numbers for these inputs
| Year | Cost of the same goods | Buying power of the amount | Buying power lost |
|---|---|---|---|
| 1 | $1,030 | $971 | 2.91% |
| 2 | $1,061 | $943 | 5.74% |
| 3 | $1,093 | $915 | 8.49% |
| 4 | $1,126 | $888 | 11.15% |
| 5 | $1,159 | $863 | 13.74% |
| 6 | $1,194 | $837 | 16.25% |
| 7 | $1,230 | $813 | 18.69% |
| 8 | $1,267 | $789 | 21.06% |
| 9 | $1,305 | $766 | 23.36% |
| 10 | $1,344 | $744 | 25.59% |
| 11 | $1,384 | $722 | 27.76% |
| 12 | $1,426 | $701 | 29.86% |
| 13 | $1,469 | $681 | 31.9% |
| 14 | $1,513 | $661 | 33.89% |
| 15 | $1,558 | $642 | 35.81% |
| 16 | $1,605 | $623 | 37.68% |
| 17 | $1,653 | $605 | 39.5% |
| 18 | $1,702 | $587 | 41.26% |
| 19 | $1,754 | $570 | 42.97% |
| 20 | $1,806 | $554 | 44.63% |
How it works
Inflation compounds like interest. If prices rise by a steady rate each year, goods that cost one amount today cost amount x (1 + rate)^years after that many years.
The other side of it is buying power: money held in cash for that long buys only amount / (1 + rate)^years of today's goods.
Real inflation changes from year to year and differs between goods, so a single steady rate is an illustration. Use it to see the size of the effect, not to predict a price.
Common mistakes
- Ignoring inflation when judging a savings rate: a 3% account in a 3% inflation year gains nothing in real terms.
- Using the average inflation of one country for a price in another.
- Assuming every price rises at the headline rate; housing, food and electronics move differently.
Questions
How much will $1,000 of goods cost in 20 years?
$1,806 at 3% a year.
What will $1,000 be worth in 20 years?
In today's buying power, $554: inflation takes away 44.63% of it.
What inflation rate should I use?
Many central banks aim for about 2%; use the average rate of your country over a long period rather than one recent year.
How do I protect savings from inflation?
Earn a return at or above inflation: compare the interest rate with the inflation rate, and see the compound interest calculator for the effect of growth.
More inflation examples
- What $1,000 is worth after 10 years of 3% inflation
- What $1,000 is worth after 20 years of 3% inflation
- What $1,000 is worth after 30 years of 3% inflation
- What $10,000 is worth after 10 years of 2% inflation
- What $10,000 is worth after 10 years of 4% inflation
- What $50,000 is worth after 25 years of 3% inflation
- What $100,000 is worth after 30 years of 2.5% inflation
- What $100,000 is worth after 20 years of 5% inflation
- What $5,000 is worth after 5 years of 6% inflation