Inflation Calculator
See how inflation changes the value of money — look back in time or project forward.
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Everything you need to know
Two Ways to Use This Calculator
Look Back: "What was $10,000 worth 20 years ago?" Find out how much less purchasing power your money has compared to the past. Look Forward: "What will $10,000 buy in 20 years?" See how inflation will erode your savings if you don't invest.
Why Inflation Matters for Your Finances
At just 3% annual inflation, money loses half its purchasing power in about 24 years. This means if you're saving for retirement 30 years away, you need to more than double your target to account for inflation. Keeping money in a zero-interest account is effectively losing money every year.
Historical Inflation Rates
- United States: ~3.3% average over the last 100 years; 2% target currently
- European Union: ~2% target (ECB); ranged 0.3%–10.6% in recent years
- United Kingdom: ~2% target; averaged about 3% over the last 50 years
- India: ~5–6% average; CPI-based targeting at 4%
- Japan: Near 0% for decades; recently 2–4%
- Brazil: ~3.75% target; historically volatile
How to Beat Inflation
- Invest in stocks: Equity markets have historically returned 7–10% annually, well above inflation.
- Real estate: Property values and rents tend to rise with inflation.
- Inflation-protected bonds: TIPS (US), Index-linked Gilts (UK) adjust for CPI automatically.
- Avoid cash hoarding: Even high-yield savings accounts may not keep up during high-inflation periods.
Related Tools
See how your investments grow with the Compound Interest Calculator. Plan your retirement accounting for inflation with the Retirement Calculator. Set a savings target with the Savings Goal Calculator.