Inflation Calculator Online | Purchasing Power Calculator
See how inflation affects your purchasing power over time with our comprehensive inflation calculator online. Calculate the real value of money, understand inflation impact on savings, and plan your financial future considering economic inflation trends.
Results:
Future Amount Needed:
$0
Purchasing Power Remaining:
0%
Typical Use Cases
Ideal for retirement planning and long-term financial strategy, this inflation calculator online helps investors understand how economic inflation erodes purchasing power over time. Financial advisors use this purchasing power calculator to demonstrate why investment returns must exceed inflation rates, while retirees utilize it to determine how much their fixed-income needs will cost in future dollars, ensuring adequate savings for maintaining their desired lifestyle.
How It Works
The inflation calculator uses the compound interest formula to project how inflation will erode the value of money over time.
- Initial Amount: The current value of money in today's dollars
- Annual Inflation Rate: The yearly rate at which prices increase (typically 2-3% in stable economies)
- Number of Years: The time period over which to calculate inflation's impact
The calculator provides the future amount needed to have the same purchasing power as your initial amount today, and the percentage of purchasing power your current money will retain after the specified time period.