Inflation calculator: what your money will be worth
See what today's money buys in the future at a chosen inflation rate, how prices rise, and the return your savings need to stay ahead.
What inflation does to savings
Inflation is the rise in prices over time. At 3% a year, something that costs 100 today costs about 134 in ten years and 181 in twenty. Money that sits still loses that buying power: 10,000 kept in cash at 3% inflation buys what about 7,440 buys today after ten years. The calculator shows both sides: the future price of today's amount, and today's buying power of a future amount.
Real vs nominal return
Your nominal return is the number on the statement. Your real return is what is left after inflation: roughly return minus inflation (exactly (1 + return) ÷ (1 + inflation) − 1). A 7% return with 3% inflation is a real return of about 3.9%. That is the number that decides whether you are actually getting wealthier. Bonds and cash are hit hardest when inflation rises unexpectedly; see how the stock–bond link behaves in high-inflation decades.
How to use the result
Use the real return, not the nominal one, when you plan how long your money lasts: the safe withdrawal rate calculator and the how long will my money last calculator both work in today's money. The compound interest calculator shows the nominal side: how a return compounds before inflation.
Frequently asked questions
How do I calculate the future value of money with inflation?
Future price = today's amount × (1 + inflation rate)^years. At 3% inflation, 10,000 today corresponds to 10,000 × 1.03^20 ≈ 18,061 in 20 years: you would need 18,061 then to buy what 10,000 buys today.
What will 100,000 be worth in 20 years?
In buying power, 100,000 kept in cash is worth 100,000 ÷ (1 + i)^20: about 67,300 at 2% inflation, 55,400 at 3% and 45,600 at 4% inflation, measured in today's money.
What is a normal inflation rate?
The US Federal Reserve and the ECB aim for 2% a year. US consumer prices rose about 3% a year on average since 1913, with long stretches near 2% and spikes above 10% in the 1970s and 1980 and to about 9% in 2022.
What return do I need to beat inflation?
Any return above the inflation rate keeps buying power; to grow it meaningfully, most investors target a real return of 3–5% a year, which at 3% inflation means a nominal return of roughly 6–8%. Broad stock indices have delivered real returns of about 6–7% a year over the last century, but with large interruptions.
From assumptions to real numbers, free
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Illustration only — not investment advice and not a forecast. Real returns vary from year to year and can be negative. Disclaimer.