UNDERSTAND YOUR MONEY
Inflation & purchasing power calculator
Translate today’s costs into future dollars and see how purchasing power could change.
How this estimate works
Equivalent future cost is today’s amount × (1 + inflation)^years. Future purchasing power of an unchanged dollar amount is that amount ÷ (1 + inflation)^years. This applies the same rate each year; it does not retrieve historical inflation data.
Your spending mix may rise faster or slower than broad inflation. This calculation does not model investment growth or changes in income.
A little more clarity
Why are there two different amounts?
Future cost tells you how many future dollars would buy the same thing. Purchasing power tells you what an unchanged dollar amount would buy in today’s terms.
Is 3% a prediction?
No. It is an editable example. Try different rates to see how sensitive a long-term goal is to inflation.
SEE THE BIGGER PICTURE
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