Inflation Impact Calculator
See what your money will actually be worth in the future. Inflation silently erodes purchasing power — find out exactly how much.
US long-run average is ~3%
Equivalent future cost
$18,061
Today's money will be worth
$5,537
In 20 years at 3% inflation
Purchasing power lost
$4,463
45% of real value gone
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How inflation erodes your money's value
Inflation is the rate at which prices rise over time, which equivalently means the rate at which money loses purchasing power. If inflation is 3% per year, something that costs $100 today will cost $134 in ten years. Your $100 bill still says $100, but it can buy less.
This calculator answers two questions: how much will you need in the future to match today's purchasing power? And if you hold cash, what is it really worth in real terms after inflation?
Why cash savings lose value over time
If your savings account pays 1% interest and inflation runs at 3%, your real return is -2% per year. After 10 years, you'll have more dollars but they'll buy less than you started with. This is why financial advisors stress investing rather than holding large cash positions long-term.
Historical inflation rates
US inflation has averaged around 3% per year over the long run, but it varies significantly by era. The 1970s saw double-digit inflation; the 2010s averaged around 1.5–2%. The 2021–2023 period saw inflation spike to 7–9% before cooling. For long-term planning, 2.5–3.5% is a reasonable assumption.