How inflation compounds
A constant inflation rate compounds just like growth: future cost equals today's amount multiplied by one plus the inflation rate for each year.
ExampleAt 3% annual inflation, 1,000 becomes about 1,343.92 after 10 years.
Inflation Calculator
Estimate how a constant inflation rate changes future prices and purchasing power.
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If something coststoday and inflation averages% foryears, what would it cost then?
Uses a constant annual inflation assumption. Actual inflation varies from year to year and differs across goods and locations.
Estimated future cost—
Cumulative inflation—
Today's amount buys—
Price increase—
Inflation factor—
Purchasing power moves the other way
If prices rise, a fixed amount of money buys less. Dividing today's amount by the inflation factor estimates its future purchasing-power equivalent.
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Common questions
Does inflation stay constant in real life?
No. This is a scenario calculator using the single annual rate you choose.
Can I enter a negative inflation rate?
Yes, down to above −100%, to model a deflation scenario.