Inflation Calculator
See how inflation can change the value of your money over time. Calculate future equivalent costs, compare inflation scenarios or estimate the salary needed to maintain today's purchasing power.
Calculate the impact of inflation
Choose what you want to calculate, enter your figures and get an instant estimate.
Calculates the future amount required to have purchasing power equivalent to your amount today.
Compare three example planning scenarios: 2%, 3% and 5% annual inflation. These are illustrative assumptions, not forecasts.
Estimates the future salary required to have purchasing power equivalent to your current salary.
Calculate first and the figures will be added automatically, or ask a general question about inflation and purchasing power.
What does inflation do to your money?
Inflation describes how the overall level of prices for goods and services changes over time. When prices rise, the same amount of money generally buys less than it did before.
That is why simply comparing today's dollar, pound or euro amount with the same number years from now can be misleading. The number may be identical, while its purchasing power is different.
The CalcNest Inflation Calculator lets you model that effect using an annual inflation rate of your choice rather than trying to predict what inflation will actually be.
Three ways to explore inflation
Use the mode that matches the question you're trying to answer. Each calculation compounds the selected inflation rate annually.
Future Value
Enter an amount, inflation assumption and time period to estimate how much money would be needed in the future to match today's purchasing power.
Compare Rates
Compare the same amount under 2%, 3% and 5% annual inflation scenarios to see how much the assumption matters over longer periods.
Salary Needed
Estimate the future salary that would have purchasing power equivalent to your salary today under the inflation rate you enter.
How inflation compounds over time
Small differences in an annual inflation assumption become much more noticeable when they compound over many years.
10,000 today at 3% inflation
If prices increased by an average of 3% every year for 20 years, you would need approximately:
This doesn't mean inflation will average 3%. It simply demonstrates the effect of that assumption if it occurred consistently.
| Time | 2% inflation | 3% inflation | 5% inflation |
|---|---|---|---|
| 5 years | 11,041 | 11,593 | 12,763 |
| 10 years | 12,190 | 13,439 | 16,289 |
| 20 years | 14,859 | 18,061 | 26,533 |
| 30 years | 18,114 | 24,273 | 43,219 |
Inflation, savings and real returns
The balance shown in an account is a nominal amount. What matters for your standard of living is what that money can actually buy.
Inflation and cash savings
If the return on savings is lower than inflation, the account balance can still rise while its purchasing power falls. This is why the interest rate alone does not tell you whether your money is gaining value in real terms.
Nominal vs real return
A nominal return is the headline percentage earned before accounting for inflation. A real return adjusts that result for changes in purchasing power, giving a better picture of how much your wealth has actually grown.
Headline inflation measures changes across a broad basket of goods and services. Your personal cost of living can change differently depending on what you spend money on, where you live and how individual prices move.
Why there isn't one “correct” inflation rate
Future inflation is uncertain. Even major central banks use targets that can differ by country, and actual inflation can move above or below those targets. That's why the calculator lets you enter your own assumption.
Targets checked against official central-bank sources. A policy target is not a prediction of the inflation rate that will occur in any particular year.
Where inflation calculations can be useful
Long-term planning
Compare today's spending needs with possible future equivalents when thinking about retirement, large purchases or other long-term goals.
Salary comparisons
Estimate how much a future salary would need to increase simply to maintain equivalent purchasing power under a chosen inflation assumption.
Savings and investments
Compare nominal growth with inflation to understand the difference between an account balance increasing and purchasing power genuinely increasing.
Related CalcNest calculators
Use these tools alongside the Inflation Calculator to explore savings, investing, retirement and take-home pay.
Inflation calculator FAQs
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