Planning
Future inflation calculator
Project how steady future inflation may erode today's dollars — and how much more you might need later for the same basket of goods.
Future purchasing power
$55,368
Breakdown
Steady-rate projection model. Actual future inflation varies year to year.
How this inflation projection is built
Purchasing power is what a dollar buys. This page applies a constant annual inflation rate for a number of years to an amount you enter. It is a planning identity, not a CPI forecast.
Two views
- Erosion — today’s amount in future purchasing power (what it still “feels like”).
- Future cost — dollars needed later for the same basket.
If inflation is i per year for n years:
- Future cost ≈ amount × (1 + i)^n
- Purchasing power ≈ amount ÷ (1 + i)^n
Worked example
$50,000 today, 3% inflation, 20 years:
- (1.03)^20 ≈ 1.806
- Future cost of the same basket ≈ $90,300
- Purchasing power of $50,000 left in a 0% account ≈ $27,700 in today’s goods
A steady 2–3% rate is a common long-run assumption, not a promise. Real years cluster and spike.
Cash that must keep pace with prices needs a return near or above this rate after tax. Compare a 0% cash pile to investment growth with a return you actually believe, not a default 10%.
Frequently asked questions
Read about inflation and purchasing power
What does this future inflation calculator show?
It projects two sides of the same coin: how much purchasing power today’s dollars keep after a number of years, and how many future dollars you may need to buy the same basket of goods.
What is purchasing power?
It is how much goods and services a dollar buys. Future inflation means the same cash may buy less over time if prices rise.
Is 3% inflation accurate?
It is a common planning assumption for long-run projections, not a forecast. Actual CPI varies year to year.
Is this the same as a CPI inflation calculator?
It is a simple future inflation calculator: one constant annual rate compounded over a number of years. It does not replay historical CPI month by month. Use it to project purchasing power and future cost of the same basket, then compare with the savings & investment growth calculator if you want a growth assumption next to inflation.
Is this a projected inflation calculator?
Yes. Enter today’s amount, a planning inflation rate, and years. It estimates future cost of the same basket and remaining purchasing power. It is a projection at a steady rate, not a forecast of next year’s CPI.
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