Inflation and Consumer Prices Calculator
Inflation makes everything you purchase, whether is is a physical good or service, cost more. Use this calculator to see the historic impact of inflation on an prices.
How the inflation and consumer prices calculator works
It compounds today’s price forward at the inflation rate to show its future cost, and discounts a fixed amount of cash to show how much its buying power shrinks over the same period.
Worked example: with amount today of $1,000, annual inflation of 3.00% and years of 20, the inflation and consumer prices calculator shows what costs $1,000 today of $1,806.
- Cost today
- $1,000
- Cost in the future
- $1,806
- Future buying power of today’s cash
- $554
- Purchasing power lost
- 45%
The formula
Future cost = amount × (1 + inflation)^years. Future buying power of today’s cash = amount ÷ (1 + inflation)^years.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the inflation and consumer prices calculator
How does inflation affect prices?
It raises the cost of goods and services over time. At 3% inflation, prices roughly double in 24 years — so what you buy today will cost noticeably more later.
Why does cash lose value?
Money that does not grow loses purchasing power as prices rise. Cash under the mattress buys less each year, which is why it is a poor long-term store of value.
What inflation rate should I use?
Long-run inflation has averaged around 2–3% in the U.S., though it varies. Use a rate that reflects your expectations or recent experience for a realistic estimate.
Is the Inflation and Consumer Prices Calculator free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.