Inflation Calculator
See what your money will actually be worth later, and what you would need to keep the same standard of living.
Your details
The long-run US average is roughly 3%
Details
Used to show your real, inflation-adjusted return
This calculator runs entirely on your device. Nothing you enter is uploaded, stored, or sold. How this works
What $100,000 buys in 20 years
$55,368
You would need $180,611 then to match $100,000 of spending today
Includes your inputs, the full breakdown, and every row of the table.
Purchasing power lost
44.6%
Equivalent amount later
$180,611
Real return on investments
3.88%
7.0% nominal minus inflation
Prices multiply by
1.81×
- Amount today
- $100,000
- Inflation at 3.0% for 20 years
- 1.806×
- Same money, future buying power
- $55,368
- Amount needed to keep pace
- $180,611
- If invested at 7.0%
- $386,968
- That balance in today's dollars
- $214,255
| Year | Buying power | Equivalent cost |
|---|---|---|
| 0 | $100,000 | $100,000 |
| 2 | $94,260 | $106,090 |
| 4 | $88,849 | $112,551 |
| 6 | $83,748 | $119,405 |
| 8 | $78,941 | $126,677 |
| 10 | $74,409 | $134,392 |
| 12 | $70,138 | $142,576 |
| 14 | $66,112 | $151,259 |
What this means
- Inflation is the quiet reason cash loses money over long periods even though the balance never drops.
- Your personal inflation rate depends on what you buy. Housing, healthcare, and education have consistently outpaced the headline index; electronics have gone the other way.
How the inflation calculation works
Inflation is the difference between the number in your account and what that number can actually buy. At 3% a year — around the long-run US average — prices roughly double every 24 years, which means money kept under a mattress loses half its value over a single working career.
The most important line here is the real return. If your investments earn 7% while inflation runs at 3%, you are not getting ahead by 4 percentage points exactly; the correct calculation divides rather than subtracts, giving about 3.9%. Close, but the gap widens as rates rise.
This is also the strongest argument against holding a large emergency fund in a non-interest-bearing account. Safety from market volatility is not the same as safety from erosion.
Frequently asked questions
What inflation rate should I assume?
Around 2–3% for long-range planning in the US. The Federal Reserve targets 2%, and the long-run historical average sits closer to 3%.
Why subtract inflation from investment returns?
Because a 7% return during 7% inflation leaves you no better off. Real return is what determines whether your standard of living improves.
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Disclaimer. This calculator is provided for general information and educational purposes only and does not constitute financial, tax, legal, medical, or engineering advice. Results are estimates based on the inputs you provide and the assumptions described above. Confirm any figure with a qualified professional before acting on it.