Inflation Calculator
Calculate the impact of inflation on purchasing power over time.
Important Notice
These calculators are for educational and informational purposes only. Results are estimates based on the information you provide and should not be considered financial, tax, or investment advice. Your actual results may vary. For personalized guidance, please consult a qualified financial advisor, tax professional, or other appropriate expert.
People Also Ask
How does inflation affect my money?
Inflation reduces purchasing power over time. At 3% inflation, $100 today buys only about $74 worth of goods in 10 years. This is why savings need to earn returns that exceed inflation.
What is a good inflation rate?
Central banks typically target 2% annual inflation as optimal for economic growth. Lower can indicate economic weakness; higher erodes purchasing power and creates uncertainty.
How much will $100 be worth in 10 years?
At 3% average inflation, $100 will have the purchasing power of about $74 in 10 years. At 2% inflation, it would be worth about $82. Higher inflation compounds these effects faster.
Should I invest to beat inflation?
Cash and low-yield accounts typically lose purchasing power to inflation over time. Historically, stocks have returned 7-10% annually, well above typical 2-3% inflation, though with higher risk and volatility.
What is purchasing power?
Purchasing power is how much goods and services your money can buy. As prices rise due to inflation, the same amount of money purchases less - this is declining purchasing power.
How do I protect my savings from inflation?
Assets that have historically outpaced inflation include stocks, real estate, I-bonds, and TIPS. High-yield savings accounts often struggle to match inflation rates over long periods.