Growth, inflation and asset mix
Inflation & Purchasing Power Calculator
Enter an amount, the years and a yearly inflation rate to see how much buying power cash loses and what the things you buy today could cost later.
What Inflation Does to Your Money
EstimateHow This Calculator Works
Inflation has two sides, and this calculator shows both. Prices rise: something that costs A today costs A × (1 + i)^t after t years at an inflation rate of i. Cash loses buying power: A held in cash that earns nothing buys only A ÷ (1 + i)^t of today's goods by then.
At 3.0% inflation over 20 years, $100,000 in a checking account that pays no interest keeps only $55,368 of its buying power. That is a loss of nearly 45%.
Frequently Asked Questions
What is the average U.S. inflation rate?
Over the past century, U.S. consumer prices (CPI-U) have risen roughly 3.0% a year on average. The Federal Reserve targets 2% inflation over the long run, measured by the personal consumption expenditures (PCE) index.
How can I protect my money from inflation?
Own assets that tend to keep up with rising prices, such as stocks, real estate, Treasury Inflation-Protected Securities (TIPS) and Series I savings bonds. Stocks and real estate have beaten inflation over long stretches, though not every year, while TIPS and I bonds are built to adjust with inflation.
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