Economics & Inflation

Inflation & Purchasing Power Calculator

Model future prices and the purchasing power of a fixed cash amount using your own inflation assumption.

Your numbers

Sample inputs are illustrative. Changing currency changes labels only.

Your result

Preparing the sample calculation…

Shared links include your entered amounts. Saved scenarios stay in this tab only.

How to use this calculator

  1. Enter amount in today’s money, constant annual inflation assumption (%), number of years.
  2. Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
  3. Read the result with the assumptions below. Export details or save a second scenario to compare your choices.

Formula and method

Future equivalent cost = amount × (1 + inflation)^years. Purchasing power of unchanged future cash, in today’s money = amount / (1 + inflation)^years.

Assumptions and limitations

A constant user-entered inflation rate, not historical CPI data or a forecast. Both amounts use one currency and a consistent basket of goods.

Worked example

At 10% annual inflation for two years, goods costing 1,000 now cost 1,210. An unchanged 1,000 then has about 826.45 of today’s purchasing power.

What the result means

Rising prices and falling purchasing power are reciprocal effects; subtracting the inflation percentage repeatedly gives the wrong compounded result.

Common questions

Are these official inflation figures?

No. The rate is your scenario; no country data is fetched.

Can this model deflation?

Yes. A negative inflation assumption reduces modeled future prices.

Methodology and transparency

Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.