Finance

Inflation and purchasing power calculator

See how much you would need to buy the same thing in the future and how much purchasing power a sum of money would retain.

Explore a scenario

What do you want to calculate?

$

What the product, service, or expense costs today.

%

Use an average annual rate you want to explore. It is not an official forecast.

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Compare inflation scenarios

These rates are illustrative, not forecasts. Use them to see how the result changes.

View details by period

See how prices accumulate and the purchasing power of an unchanged amount decreases.

How to read the result

Price increases and purchasing-power loss are related, but they are not the same percentage.

Price increase

Shows how much more you would need in the future to buy what you buy hoy.

Remaining purchasing power

Shows what percentage of buying power an amount that does not grow would retain.

Purchasing-power loss

Shows how much less that amount would buy at future prices.

Cumulative inflation formula

Inflation factor = (1 + annual rate)years. To estimate the future cost, multiply the current price by that factor. To express a future amount in today's money, divide it by the same factor.

Compound inflation

Each annual increase applies to prices that have already risen. That is why a small difference in the rate can produce very different results over long terms.

Frequently asked questions

Does the calculator use official inflation data?

No. You enter the rate manually to explore scenarios. It does not retrieve official data or predict future inflation.

How is a future price calculated?

Multiply the current price by the cumulative inflation factor: one plus the annual rate raised to the number of years.

What is purchasing power?

It is the amount of goods and services a sum of money can buy. When prices rise and the amount stays the same, its purchasing power falls.

Why are price increases and purchasing-power loss different?

They use different bases. If prices double, they rise 100%, but a fixed amount can buy only half as much and loses 50% of its purchasing power.

What inflation rate should I enter?

Use an average annual rate you want to explore and compare several scenarios. The appropriate rate depends on the country, term and type of expense.

Why do small rate differences change the result so much?

Because inflation compounds. Over long terms, each year also affects increases accumulated in prior years.