Inflation Calculator
See what a future amount of money is worth in today’s purchasing power after inflation.
Want to understand the concept, not just the number? Read What Inflation Quietly Takes .
How it's calculated
The future amount is divided by inflation compounded over the number of years, which gives its equivalent purchasing power today. Prices tend to rise a little every year, so the same number of dollars buys a bit less as time passes.
For example, $100,000 twenty years from now is worth about $55,368 in today’s money at 3% inflation. Nothing was taken from the account. The dollars simply buy less because the cost of everything else went up.
This is why a retirement target is best thought about in today’s dollars. A number that looks large decades out can be far smaller once you translate it back into what it can actually buy.
Assumptions
- Inflation compounds annually at the rate you set.
Last updated: 2026-08-07
These assumptions follow our general methodology.
Frequently asked questions
What inflation rate should I use?
The long-run US average is around 3%, though it varies year to year. Central banks often target about 2%. Trying a slightly higher rate is a reasonable way to be cautious.
Why does inflation matter for retirement?
Because your expenses keep rising after you stop working. A plan that ignores inflation can look comfortable on paper and still fall short, since the same withdrawal buys less each year.
How is this different from a return calculation?
A return grows your money over time. Inflation shrinks what each dollar can buy. This tool isolates the second effect so you can see purchasing power on its own.