Inflation Calculator
See what today's cost will become after years of inflation.
Current Cost
$100,000
Cost Increase
$79,085
Future Cost
$179,085
Future Cost
$179,085
Cost Over Time
Yearly Breakdown
| Year | Current Cost | Cost Increase | Future Cost |
|---|---|---|---|
| 1 | $100,000 | $6,000 | $106,000 |
| 2 | $100,000 | $12,360 | $112,360 |
| 3 | $100,000 | $19,102 | $119,102 |
| 4 | $100,000 | $26,248 | $126,248 |
| 5 | $100,000 | $33,823 | $133,823 |
| 6 | $100,000 | $41,852 | $141,852 |
| 7 | $100,000 | $50,363 | $150,363 |
| 8 | $100,000 | $59,385 | $159,385 |
| 9 | $100,000 | $68,948 | $168,948 |
| 10 | $100,000 | $79,085 | $179,085 |
Frequently Asked Questions
1What is inflation?
Inflation is the rate at which the general level of prices for goods and services rises over time. As prices rise, each unit of money buys less, so the same amount has lower purchasing power in the future.
2How does this inflation calculator work?
It grows today's cost at your chosen inflation rate, compounded once a year, for the number of years you enter. See "How the Numbers Are Calculated" below for the exact formula.
3What inflation rate should I use?
Use a long-term average for your country and for the type of expense. Headline consumer inflation is often a few percent a year, but costs like education and healthcare usually rise faster, so use a higher rate for those.
4Why does inflation matter for financial planning?
Goals like retirement, a child's education or buying a home are paid for at future prices, not today's. Inflating today's cost first tells you the real target your savings need to reach.
5Is the result exact?
No. It assumes the same inflation rate every year, while real inflation changes from year to year. Treat the result as a planning estimate, not a prediction.
How the Numbers Are Calculated
The calculator grows today's cost at the inflation rate you enter, compounded once a year, for the number of years you choose. Because each year's increase is applied to the already-inflated price, costs rise faster the longer the time period.
Future Cost
FV = C × (1 + r)^t
Cost Increase
Cost Increase = FV − C
- C = current cost, r = annual inflation rate, t = number of years.
- All figures are rounded only at the point they are displayed.