Inflation Calculator
See how inflation changes future costs and the buying power of your money.
$
US long-term average is about 3%
Cost in 10 years
$1,343.92
Prices rise 34.39% in total at 3% annual inflation
How to use
- Choose a direction: future cost of an item, or future buying power of your money.
- Enter a dollar amount.
- Set the expected annual inflation rate — the US long-term average is about 3%.
- Choose the number of years and review the result.
Formula
Future cost = Amount × (1 + inflation rate ÷ 100)^years.
Future buying power = Amount ÷ (1 + inflation rate ÷ 100)^years.
Inflation compounds: at 3% per year, prices roughly double every 24 years (rule of 72).
Example
Something that costs $1,000 today, with 3% average annual inflation over 10 years:
Future cost ≈ $1,344. Conversely, $1,000 kept in cash would only buy about $744 worth of today's goods in 10 years.
Frequently asked questions
What is the average inflation rate in the US?
Over the long run, US inflation has averaged about 3% per year, though it varies — it exceeded 8% in 2022 and has been near 2–3% in typical years. The Federal Reserve targets 2%.
How does inflation affect my savings?
Cash loses buying power at the inflation rate. At 3% inflation, $10,000 in cash buys only about $7,400 worth of goods after 10 years. Investing aims to outpace inflation.
What is the rule of 72 for inflation?
Divide 72 by the inflation rate to estimate how many years it takes prices to double. At 3% inflation, prices double in roughly 24 years.
Does this calculator use historical CPI data?
No, it uses a flat annual rate you choose, which is useful for planning scenarios. For exact historical conversions, use CPI data from the US Bureau of Labor Statistics.
How much will $100 be worth in 20 years?
At 3% annual inflation, $100 will have the buying power of about $55 in today's dollars after 20 years — and an item costing $100 today will cost about $181.