Inflation Calculator

Current Cost

Annual Inflation Rate (%)

Number of Periods (in Years)

Currency

Current Cost

$0.00

Inflation-Caused Cost Increase

$0.00

Future Cost

$0.00

Percentage Increase

0.00%

Expanding Purchasing Power Over 0 Years

$0.00 equals $0.00
Average inflation rate: 0.00%

Cost Composition Breakdown

Current Cost

Cost Increase

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✅ What is inflation?

We define inflation as the steady rise in general prices across the economy. When inflation happens, each dollar buys less than before — our purchasing power falls. Inflation is measured as a percentage change in a price index (like CPI) over time. Small, steady inflation is normal; very high or runaway inflation hurts saving and planning. We watch inflation to protect incomes, savings, and budgets.

✅ About the inflation rate

The inflation rate is the percent change in price level over a period, usually a year. If the rate is 3%, prices that cost $100 last year cost about $103 now. Central banks and governments track it monthly and annually. We use the rate to adjust wages, pensions, investment returns, and future cost estimates. Short-term spikes and long-term trends matter differently — we look at both.

✅ Key features of inflation

Persistent price rise: inflation is a continued increase, not one-off price moves.
Measured as a percent: usually year-over-year using consumer price indexes.
Reduces purchasing power: money buys less over time.
Varies by category: food, energy, housing can move differently.
Can be anticipated or surprising: expectations shape wages and prices.
Monetary and fiscal drivers: money supply, demand, supply shocks, and policy affect it.

✅ What is an inflation calculator?

An inflation calculator estimates how prices change over time using an inflation rate. We enter a current cost, a yearly inflation rate, and number of years; the tool shows future cost, total increase, and percent change. It helps us plan savings goals, retirement budgets, or compare past prices in today’s money. This calculator assumes compound inflation (annual compounding) unless stated otherwise.

✅ How to use our inflation calculator

Enter Current Cost (item price today).
Enter Annual Inflation Rate (%) (e.g., 3).
Enter Number of Periods (years).
Choose Currency.
Click Calculate. We’ll show current cost, inflation-caused increase, future cost, and percent increase plus a pie chart. Use decimals for finer results. We recommend inline validation (not alerts), accessibility labels, and an export option for reports.

✅ Inflation formulas

((Current CPI – Previous CPI) / Previous CPI) * 100

✅ Examples of inflation

At 3% inflation, $50,000 today ≈ $67,196 in 10 years. Percentage increase 34.39%

✅ Who is inflation for?

Everyone. We — consumers, savers, retirees, businesses, policymakers, and investors — need to account for inflation. It matters for setting wages, pensions, investment targets, loan terms, and pricing. Households use it to plan budgets and long-term goals; businesses use it to set prices and contracts. We all benefit from inflation-aware planning.