Inflation Calculator
Prices grow by a factor of (1 + inflation rate) raised to the number of years. At 3% a year, something that costs $1,000 today will cost $1,343.92 in 10 years, and $1,000 will buy only $744.09 worth of today's goods. Enter any amount, rate and period.
By the Calculators With Steps team · Updated November 10, 2026 · How we check our math
- Cumulative inflation
- 34.39%prices × 1.3439
- What $1,000.00 will buy in 10 years
- $744.09in today's prices
- Purchasing power lost
- 25.59%over the period
- Prices double every
- 23.4 yearsat 3% a year
- Still buys
- Lost to inflation
Step-by-step working
- Inflation factor = (1 + i)^t = (1 + 0.03)^10 = 1.343916
- Future cost = today's price × factor = $1,000.00 × 1.343916 = $1,343.92
- Purchasing power = $1,000.00 ÷ 1.343916 = $744.09, a loss of 25.59%
Show year-by-year table
| Year | Future cost | Buying power of $1,000 |
|---|---|---|
| 1 | $1,030.00 | $970.87 |
| 2 | $1,060.90 | $942.60 |
| 3 | $1,092.73 | $915.14 |
| 4 | $1,125.51 | $888.49 |
| 5 | $1,159.27 | $862.61 |
| 6 | $1,194.05 | $837.48 |
| 7 | $1,229.87 | $813.09 |
| 8 | $1,266.77 | $789.41 |
| 9 | $1,304.77 | $766.42 |
| 10 | $1,343.92 | $744.09 |
Uses one constant average rate. Actual inflation changes from year to year, and prices for housing, healthcare or food can rise faster or slower than the average. For exact historical figures use official CPI data (BLS in the U.S., MOSPI in India).
How to use the inflation calculator
Choose one of two questions:
- Future cost – enter an amount, an average inflation rate and how many years ahead. You get the future price of the same goods and how much your money will still buy.
- Past value today – enter an amount from the past, an average inflation rate and how many years ago it was. You get the equivalent amount today.
The calculator uses one average rate for every year. It does not contain historical price data, so it never invents past figures. For exact historical values, use official consumer price index (CPI) data: the BLS CPI Inflation Calculator in the U.S. or MOSPI’s CPI releases in India. This tool is best for planning ahead and for quick “what if” estimates.
The inflation formula
Prices compound the same way savings do:
Future cost = Today’s cost × (1 + i)^t
Purchasing power = Amount ÷ (1 + i)^t
- i = average annual inflation rate as a decimal (3% = 0.03)
- t = number of years
Cumulative inflation over the whole period is (1 + i)^t − 1, and the share of purchasing power lost is 1 − 1 ÷ (1 + i)^t.
Worked example
$1,000 over 10 years at 3% average inflation:
| Item | Value |
|---|---|
| Inflation factor | 1.03^10 = 1.343916 |
| Future cost of $1,000 of goods | $1,343.92 |
| Cumulative inflation | 34.39% |
| What $1,000 will buy, in today’s prices | $744.09 |
| Purchasing power lost | 25.59% |
Notice that a 34.39% rise in prices does not mean a 34.39% loss. Your $1,000 loses 25.59% of its buying power, because the loss is measured against the higher price level.
Inflation targets: 2% in the U.S., 4% in India
Central banks set targets so that people can plan:
| Rate | Cost of $1,000 of goods in 10 years | What $1,000 buys in 10 years |
|---|---|---|
| 2% (Federal Reserve target) | $1,218.99 | $820.35 |
| 3% | $1,343.92 | $744.09 |
| 4% (RBI target) | $1,480.24 | $675.56 |
| 6% (top of RBI’s band) | $1,790.85 | $558.39 |
The Federal Reserve says 2% inflation over the longer run, measured by the personal consumption expenditures (PCE) price index, is most consistent with its mandate of maximum employment and stable prices. India’s government sets the RBI’s target as 4% consumer price inflation, with an upper tolerance of 6% and a lower tolerance of 2%. Actual inflation can sit well above or below these targets for years, so test a few rates.
Why an average rate is only an estimate
Real inflation moves around. It can run well above the long-run average for a few years and then drop below it, and the order matters less than the overall rise when you look back over a long period. What matters more is which prices you pay. The headline CPI tracks a broad basket of goods and services, but your own costs depend on where you live and what you buy. Rent, healthcare, insurance and college tuition have often risen faster than the average, while electronics have tended to get cheaper. For long-range planning, run the calculator at two or three rates, such as 2%, 3% and 4%, and plan for the higher result.
What inflation means for your plans
- Savings. Money in an account paying less than inflation loses buying power. Compare your account’s APY with the inflation rate, or add inflation in the savings calculator.
- Investments. The real return is (1 + nominal return) ÷ (1 + inflation) − 1. A 7% return with 3% inflation is a 3.88% real return. The investment calculator shows results in today’s dollars.
- Retirement. Costs 25 or 30 years away can be more than double today’s. At 3%, $100 of spending today needs about $242.73 in 30 years. Plan with the retirement calculator.
- Salary. A raise smaller than inflation is a pay cut in real terms. Use the future cost mode with your salary to see the pay that keeps you even.
- Doubling time. The rule of 70 estimates how long prices take to double: 70 ÷ 3 = 23.3 years at 3% inflation.
Inflation Calculator: frequently asked questions
How do you calculate the future cost with inflation?
Multiply today's price by (1 + inflation rate)^years. At 3% a year, $1,000 today becomes 1,000 × 1.03^10 = $1,343.92 in 10 years. At the Fed's 2% target it would be $1,218.99, and at RBI's 4% target $1,480.24.
How much purchasing power does inflation take away?
Divide your money by the same factor. After 10 years of 3% inflation, $1,000 buys what $744.09 buys today, a loss of 25.59%. After 30 years, $100 has the buying power of about $41.20.
How do I calculate the inflation rate from CPI?
Inflation rate = (CPI now − CPI a year ago) ÷ CPI a year ago × 100. If the index rises from 300 to 309, inflation is 9 ÷ 300 × 100 = 3%. Official CPI figures come from the Bureau of Labor Statistics in the U.S. and MOSPI in India.
What is $1,000 from 20 years ago worth today?
It depends on the inflation that actually happened. At an assumed 3% average, $1,000 from 20 years ago equals about $1,806.11 today, and a dollar now buys 55.37% of what it did then. For exact historical values use official CPI data.
How much should my salary rise to keep up with inflation?
Your pay needs to grow at least as fast as prices. A $60,000 salary would have to reach $80,634.98 in 10 years to keep the same buying power at 3% inflation a year.
What inflation rate do central banks aim for?
The U.S. Federal Reserve aims for 2% a year over the longer run, measured by the PCE price index. The Reserve Bank of India's target, set by the government, is 4% CPI inflation with a band of 2% to 6%, retained for April 2026 to March 2031.
How long does it take prices to double?
Divide 70 by the inflation rate for a quick estimate. At 3%, the rule of 70 gives 23.3 years and the exact answer is 23.4 years. At 6% prices double in about 11.9 years.
How we checked this page: every figure in the examples and FAQs above is produced by this calculator and verified by automated tests against known answers, and the rules and rates come from the sources below. Last updated . Spotted a problem? Tell us.