Have you noticed your money does not stretch as far as it used to? That is inflation: prices slowly rise over time, so the same dollar buys less. Use the free calculator below to see how much things could cost in the future and how much buying power your savings could lose.
How the calculator helps
Choose what you want to find out. You can see what an item or expense could cost in the future, what your money would be worth after a number of years, or what yearly inflation rate fits two prices you already know. Enter an amount, the number of years, and a yearly inflation rate, and the calculator shows the result right away. It also shows how many years it takes for prices to double at that rate, and a year-by-year table lays out how costs rise and buying power shrinks.
Ways to protect your money from inflation
- Plan with future prices in mind. A goal that costs $50,000 today will cost more by the time you reach it. Use the calculator to set a realistic target.
- Let your savings earn more than inflation. Cash that earns less than the inflation rate slowly loses buying power. Compare savings rates, CDs, and long-term investments.
- Aim for raises that keep up. If your pay does not rise at least as fast as prices, you are effectively earning less each year.
- Be careful with fixed costs. A fixed-rate loan can help over time, because you repay it with dollars that are worth less. Rent and many bills tend to rise.
- Review your budget each year. Prices for food, insurance, and housing change, so updating your numbers helps you stay on track.
Before you rely on the numbers
The calculator assumes the same inflation rate every year. In real life, inflation changes from year to year, and it affects different things differently. Housing, health care, and education have often risen faster than the overall average, while some goods get cheaper. Try several different rates to see a range of possible results.
Try it now
Enter your numbers and see what inflation could mean for you:
This calculator and article are for general information only and are not financial advice. Talk with a financial professional about your specific situation.
