Inflation Calculator
See how rising prices change what your money can buy
Your Numbers
Up to 100 years
What your savings earn per year
Quick inflation scenarios
Future cost of $1,000 of goods
$1,806
in 20 years
Buying power of $1,000 cash
$554
in today's dollars
Cumulative inflation
80.6%
44.6% of buying power lost
Real return on savings
0.97%
per year, after inflation
At 3.0% a year, prices double and cash loses half its buying power in about 23.4 years.
At 4.0% interest, $1,000 grows to $2,191 in 20 years, worth $1,213 in today's dollars. Your savings keep ahead of inflation.
Year-by-Year Inflation Table
| Year | Cost of Goods | Buying Power of Cash | Savings Balance | Savings in Today's $ | Cumulative Inflation |
|---|---|---|---|---|---|
| Today | $1,000 | $1,000 | $1,000 | $1,000 | 0.0% |
| 1 | $1,030 | $971 | $1,040 | $1,010 | 3.0% |
| 2 | $1,061 | $943 | $1,082 | $1,020 | 6.1% |
| 3 | $1,093 | $915 | $1,125 | $1,029 | 9.3% |
| 4 | $1,126 | $888 | $1,170 | $1,039 | 12.6% |
| 5 | $1,159 | $863 | $1,217 | $1,049 | 15.9% |
| 6 | $1,194 | $837 | $1,265 | $1,060 | 19.4% |
| 7 | $1,230 | $813 | $1,316 | $1,070 | 23.0% |
| 8 | $1,267 | $789 | $1,369 | $1,080 | 26.7% |
| 9 | $1,305 | $766 | $1,423 | $1,091 | 30.5% |
| 10 | $1,344 | $744 | $1,480 | $1,101 | 34.4% |
| 11 | $1,384 | $722 | $1,539 | $1,112 | 38.4% |
| 12 | $1,426 | $701 | $1,601 | $1,123 | 42.6% |
| 13 | $1,469 | $681 | $1,665 | $1,134 | 46.9% |
| 14 | $1,513 | $661 | $1,732 | $1,145 | 51.3% |
| 15 | $1,558 | $642 | $1,801 | $1,156 | 55.8% |
| 16 | $1,605 | $623 | $1,873 | $1,167 | 60.5% |
| 17 | $1,653 | $605 | $1,948 | $1,179 | 65.3% |
| 18 | $1,702 | $587 | $2,026 | $1,190 | 70.2% |
| 19 | $1,754 | $570 | $2,107 | $1,202 | 75.4% |
| 20 | $1,806 | $554 | $2,191 | $1,213 | 80.6% |
About Inflation
Inflation is the general rise in prices over time. Each year of inflation means the same dollar buys a little less. Because it compounds, even modest inflation adds up: prices rise by more than 80% over 20 years at 3% a year. Money kept in cash or low-interest accounts quietly loses value unless it earns more than the inflation rate.
The Formulas
Future cost = A × (1 + i)^n
Buying power = A ÷ (1 + i)^n
Real return = (1 + r) ÷ (1 + i) − 1
A = amount, i = inflation rate, r = savings rate, n = years
Beating Inflation
- •Keep emergency cash in a high-yield account; a 1% account loses buying power when inflation runs at 3%
- •Treasury Inflation-Protected Securities (TIPS) and I bonds adjust with the Consumer Price Index
- •Stocks have historically outpaced inflation over long periods, though not in every year
- •At 3% inflation, $60,000 of yearly spending rises by about $1,800 the next year
- •Aim for raises that at least match inflation to protect your real income