Planning
Inflation Calculator
See how inflation erodes the purchasing power of your money over time.
Parameters
$
%
Results
Purchasing power in 20 years
$553.68
In today's dollars
Value lost to inflation
$446.32
Future equivalent needed
$1,806.11
Purchasing power over time
Understanding inflation
What is inflation?
Inflation is the rate at which the general price level rises, reducing purchasing power. At 3% inflation, $100 today buys only $55 worth of goods in 20 years.
Historical US inflation
The US long-run average inflation rate is approximately 3%. The Fed targets 2% annual inflation as a healthy level.
Protecting your money
Keeping money in a savings account earning less than inflation means losing real value. Invest in assets that historically outpace inflation.
TIPS
Treasury Inflation-Protected Securities (TIPS) are government bonds that adjust their principal based on inflation, offering a hedge against it.
For educational purposes only. Inflation rates are variable and unpredictable. Not financial advice.