Inflation calculator: what will your money be worth?
See how much purchasing power an amount keeps after a number of years at a given inflation rate — and how much of it inflation quietly takes away.
Purchasing power after 20 years
$61,027
$100,000 today buys 39% less by then.
Read: inflation and real returns →How the calculation works
The real value is the amount divided by (1 + inflation) to the power of the number of years. At 2.5 % inflation, 100,000 today buys as much as about 61,000 will buy in twenty years.
Inflation compounds just like returns, only against you. That is why a savings plan is best judged by its real return: approximately return minus inflation, exactly (1 + r)/(1 + i) − 1 — so 3.92 % rather than 4 % at 6 % and 2 %.
The rate is an assumption. Central banks in the euro area and the United States target 2 % over the medium term; the 2022 spike showed how quickly it can move above that.
Frequently asked questions
Which inflation rate should I use?
The ECB and the Federal Reserve target 2 % over the medium term. Try higher rates such as 3 or 4 % to see a stress case, and remember that your personal basket of goods can differ from the official index.
How does inflation relate to my investment return?
Subtract the inflation rate from your nominal return to get the real return, the growth of your purchasing power. A 6 % return at 2 % inflation is roughly 4 % real; at 4 % inflation it is roughly 2 %.
Why is there no hand-off into the simulator?
The simulator models growth, not shrinkage: its interest rate cannot be negative. Read the guide on inflation and real returns to see how to keep a whole plan in today's money.