CalcQuick · Inflation & buying power
Inflation Calculator for Future Costs and Purchasing Power
Enter an amount, an assumed annual inflation rate and a duration. See both how much the same basket would cost later and how much an unchanged sum of money would buy in today’s terms.
Reviewed and updated:Illustrative inputs: replace rates and costs with your own assumptions.
Uses your constant inflation assumption. No historical CPI series or live inflation rate is loaded.
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How to use this calculator
- Enter your values using the units shown.
- Review the result, which updates instantly.
- Check the formula and assumptions before using the number for a decision.
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Formula and assumptions
Price factor F = (1 + annual inflation rate)^years, with the rate as a decimal. Future cost = starting amount × F. Purchasing power of the fixed amount = starting amount ÷ F. Cumulative price change = (F − 1) × 100%.
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Worked example
At an assumed 3% annual inflation for 10 years, a basket costing $10,000 today would cost about $13,439.16. A fixed $10,000 would have about $7,440.94 of today’s purchasing power.
CalcQuick
Sources and scope
These references support the formula or category guidance. CalcQuick remains responsible for the calculator implementation.
- Purchasing power and constant dollars: price-index ratiosU.S. Bureau of Labor Statistics
FAQ
Frequently asked questions
Does this calculator use official historical CPI data?
No. You supply an annual rate that is held constant. The linked BLS reference explains price-index ratios and purchasing power, but its historical data is not imported into this calculator.
Why are future cost and purchasing power different?
Future cost shows the money needed to buy the same basket later. Purchasing power shows what an unchanged amount would buy in today’s money. With inflation, the first rises while the second falls.
Can I use a negative inflation rate?
Yes. A rate above −100% and below zero models constant deflation: the same basket becomes cheaper and the fixed amount buys more. Zero inflation leaves both amounts unchanged.