Inflation Calculator
How prices rise and purchasing power falls over time at a given inflation rate.
Result
Future cost
134,392
Future purchasing power
74,409
How it works
Inflation is compound erosion. This calculator applies your rate over your chosen number of years: future cost = amount × (1 + rate)^years, and shows the mirror image — what today's money will still buy later. Because it compounds, modest-sounding rates bite hard over time. At 3% a year, prices rise 34% in a decade and double in about 24 years. A useful shortcut is the rule of 70: divide 70 by the inflation rate to get the years until prices double — 70 ÷ 3 ≈ 23. The practical consequence is that cash held still loses value silently. Money earning 1% while inflation runs at 3% loses 2% of purchasing power a year, even though the account balance grows. That gap between nominal and real return is why inflation matters more to savers than the headline number suggests.
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Frequently asked questions
What does inflation do to savings?
It erodes them: money left idle buys less each year, so it must earn at least the inflation rate to keep its value.
Is 3% inflation a lot?
At 3% a year, prices roughly double in about 24 years — small annual rates compound into big changes.
Does my salary keep up with inflation?
Only if it rises at least as fast. A 2% raise during 3% inflation is a 1% pay cut in real terms — the number on the payslip grows while what it buys shrinks.
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