Inflation Calculator
See how inflation erodes your purchasing power over time.
Future Equivalent Cost
$180,611
What $100,000 of goods will cost in 20 years
Purchasing Power
$55,368
What $100,000 will be worth in today's dollars
Purchasing Power Loss
$44,632
44.6% loss over 20 years
| Year | Future Equivalent | Purchasing Power | Power Loss |
|---|---|---|---|
| Year 1 | $103,000 | $97,087 | $2,913 |
| Year 2 | $106,090 | $94,260 | $5,740 |
| Year 3 | $109,273 | $91,514 | $8,486 |
| Year 4 | $112,551 | $88,849 | $11,151 |
| Year 5 | $115,927 | $86,261 | $13,739 |
| Year 6 | $119,405 | $83,748 | $16,252 |
| Year 7 | $122,987 | $81,309 | $18,691 |
| Year 8 | $126,677 | $78,941 | $21,059 |
| Year 9 | $130,477 | $76,642 | $23,358 |
| Year 10 | $134,392 | $74,409 | $25,591 |
| Year 11 | $138,423 | $72,242 | $27,758 |
| Year 12 | $142,576 | $70,138 | $29,862 |
| Year 13 | $146,853 | $68,095 | $31,905 |
| Year 14 | $151,259 | $66,112 | $33,888 |
| Year 15 | $155,797 | $64,186 | $35,814 |
| Year 16 | $160,471 | $62,317 | $37,683 |
| Year 17 | $165,285 | $60,502 | $39,498 |
| Year 18 | $170,243 | $58,739 | $41,261 |
| Year 19 | $175,351 | $57,029 | $42,971 |
| Year 20 | $180,611 | $55,368 | $44,632 |
Frequently Asked Questions
What is inflation?
Inflation is the rate at which the general level of prices for goods and services rises over time, reducing purchasing power. A 3% inflation rate means something costing $100 today will cost $103 next year.
What is purchasing power?
Purchasing power is the value of a currency in terms of what it can buy. As inflation rises, purchasing power falls, meaning you need more money to buy the same goods and services.
How does inflation affect savings?
If your savings earn less than the inflation rate, your money loses purchasing power over time. For example, $100,000 in savings earning 1% interest with 3% inflation effectively loses 2% of its value each year.
What is the average historical inflation rate?
In the US, the average annual inflation rate has been around 3% over the past century. However, it can vary significantly year to year, from near 0% to over 10% in extreme periods.