Inflation Calculator — $10.000 After 20 Years at 3% Inflation
See how inflation erodes the future purchasing power of your money over time.
Inputs
Amount of money today
Expected annual inflation rate
Time period to calculate
Planning for Inflation
- Test various inflation paths: Compare historical averages with high-inflation environments to see best- and worst-case purchasing power outcomes.
- Integrate with savings goals: Take the inflation-adjusted results into the Savings Goal Calculator so long-term objectives are quoted in today’s dollars.
- Protect future income: Use the Real Return Calculator to ensure portfolio returns keep up with the inflation scenarios you model here.
Frequently Asked Questions
How does inflation affect my money?
Inflation reduces purchasing power over time. Money that buys $100 worth of goods today will buy less in the future as prices rise. This is why investing is important to outpace inflation.
What is a typical inflation rate?
Historically, inflation averages around 2-3% annually in developed countries. However, rates can vary significantly by year and region. The Federal Reserve targets 2% inflation as a healthy rate for economic growth.
How can I protect my money from inflation?
Investing in assets that outpace inflation, such as stocks, real estate, or inflation-protected securities (TIPS), helps preserve purchasing power. Simply holding cash loses value over time due to inflation.