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Inflation Calculator

Inflation silently erodes the value of your money every year. Whether you want to see what a sum of money will be worth in the future, or understand what a price from the past equals in today’s dollars, this calculator gives you a clear, honest picture of purchasing power over time.

Future Value Settings

$
1%5%10%
1 yr20 yrs40 yrs

Results

Future Equivalent Price
$1,344
Purchasing Power Lost
25.6%
Needed to Maintain Power
$1,344
Today's $1,000 Future purchasing power
74.4%
Your money retains 74.4% of today's purchasing power after 10 years at 3.0% inflation.

Year-by-Year Value Erosion

YearValue of Original $Purchasing PowerPower Lost

Beat Inflation: Required Investment Return

To maintain your purchasing power, your investments need to earn at least as much as the inflation rate. To actually grow your wealth in real terms, you need to exceed it.

Break Even (keep up)
3.0%
annual return
Modest Growth (+2%)
5.0%
annual return
Strong Growth (+5%)
8.0%
annual return

Want to see how compound growth can outpace inflation? Try the Compound Interest Calculator →

How to Protect Against Inflation

Inflation is a permanent feature of modern economies. Here are four evidence-based strategies to protect your purchasing power:

1. Invest in assets that historically outpace inflation. Broad stock market index funds have historically returned around 7–10% annually before inflation adjustments — well above the long-run US inflation rate of roughly 3%. Holding cash long-term is a guaranteed losing strategy in real terms.

2. Consider I Bonds and TIPS. US Treasury Inflation-Protected Securities (TIPS) and Series I Savings Bonds are explicitly designed to rise with inflation. They won’t make you rich, but they preserve purchasing power with low risk — especially useful for emergency funds or short-term savings.

3. Real assets provide a natural hedge. Real estate, commodities, and infrastructure tend to rise in nominal value alongside inflation, though they carry their own risks and illiquidity. REITs (Real Estate Investment Trusts) offer exposure without direct ownership.

4. Avoid holding large amounts in low-yield savings accounts. Even a high-yield savings account at 4–5% barely keeps pace with moderate inflation. Money that won’t be needed for 5+ years should generally be invested, not saved. Review your allocation regularly as interest rates change.