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Inflation & Purchasing Power Calculator

See what today's money will be worth in the future.
Future purchasing power
$55,368
Value lost
$44,632
% of today's value
55.37%

Inflation quietly erodes the purchasing power of cash. This calculator shows what a given amount of money today will be worth in real terms after a number of years at an assumed inflation rate — a reminder of why long-term savers need returns that outpace inflation.

Formula reviewed 2026-08-021 primary sourceMethodology and disclosures →

How this inflation & purchasing power calculator works

The calculator discounts today's dollars by the assumed annual inflation rate to estimate what the same amount could buy in the future.

Formula

Future purchasing power = Today's amount ÷ (1 + inflation rate)years

Inflation affects categories differently. Housing, healthcare, education, and energy may not move in line with a broad inflation measure.

Primary specifications

Before you use the result

Assumptions

  • • Inflation is constant every year.
  • • The result is expressed in today's dollars.
  • • Personal spending patterns can rise faster or slower than headline inflation.

Quick start

  1. 1. Enter the amount whose purchasing power you want to test.
  2. 2. Try a range of plausible inflation assumptions.
  3. 3. Compare the result with your expected investment return.

Frequently asked questions

Why does inflation matter for investors?

Inflation reduces what each dollar can buy over time. If your investments don't grow faster than inflation, you lose purchasing power even as your nominal balance rises.

What inflation rate should I use?

Central banks often target around 2% annual inflation, but realized inflation varies. Testing a range — say 2% to 5% — shows how sensitive your future purchasing power is.

Will my personal inflation rate match CPI?

Not necessarily. Your spending mix can differ from the broad basket, especially for housing, healthcare, education, and energy.

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The math is easy. The macro is hard.

Inflation & Purchasing Power Calculator shows the arithmetic. Members get the monthly call that decides which inputs matter, plus written breakpoints when the facts move. $15/month or $150/year.

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