What $100,000 is worth after 30 years of 2.5% inflation
After 30 years of 2.5% inflation, what $100,000 buys today will cost $209,757, and $100,000 held in cash will buy only $47,674 worth of today's goods, a loss of 52.33%.
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 | $102,500 | $97,561 | 2.44% |
| 2 | $105,062 | $95,181 | 4.82% |
| 3 | $107,689 | $92,860 | 7.14% |
| 4 | $110,381 | $90,595 | 9.4% |
| 5 | $113,141 | $88,385 | 11.61% |
| 6 | $115,969 | $86,230 | 13.77% |
| 7 | $118,869 | $84,127 | 15.87% |
| 8 | $121,840 | $82,075 | 17.93% |
| 9 | $124,886 | $80,073 | 19.93% |
| 10 | $128,008 | $78,120 | 21.88% |
| 11 | $131,209 | $76,214 | 23.79% |
| 12 | $134,489 | $74,356 | 25.64% |
| 13 | $137,851 | $72,542 | 27.46% |
| 14 | $141,297 | $70,773 | 29.23% |
| 15 | $144,830 | $69,047 | 30.95% |
| 16 | $148,451 | $67,362 | 32.64% |
| 17 | $152,162 | $65,720 | 34.28% |
| 18 | $155,966 | $64,117 | 35.88% |
| 19 | $159,865 | $62,553 | 37.45% |
| 20 | $163,862 | $61,027 | 38.97% |
| 21 | $167,958 | $59,539 | 40.46% |
| 22 | $172,157 | $58,086 | 41.91% |
| 23 | $176,461 | $56,670 | 43.33% |
| 24 | $180,873 | $55,288 | 44.71% |
| 25 | $185,394 | $53,939 | 46.06% |
| 26 | $190,029 | $52,623 | 47.38% |
| 27 | $194,780 | $51,340 | 48.66% |
| 28 | $199,650 | $50,088 | 49.91% |
| 29 | $204,641 | $48,866 | 51.13% |
| 30 | $209,757 | $47,674 | 52.33% |
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 $100,000 of goods cost in 30 years?
$209,757 at 2.5% a year.
What will $100,000 be worth in 30 years?
In today's buying power, $47,674: inflation takes away 52.33% 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 20 years of 5% inflation
- What $5,000 is worth after 5 years of 6% inflation
- What $1,000 is worth after 10 years of 8% inflation