Reckonary / Finance / Inflation calculator
Same goods will cost
Inflation is the slow rise in prices over time. A dollar buys a little less each year, so the same money sitting in cash quietly loses value. This calculator shows two sides of that: what today's purchase will cost years from now, and what a future sum is really worth in today's money.
Money held as cash earns nothing against rising prices. At 3% a year, what costs $1,000 today costs about $1,344 in ten years — and $1,000 tucked away unspent buys only about $744 of today's goods by then. The longer the stretch and the higher the rate, the wider that gap grows.
Many central banks aim for steady, mild inflation around 2 to 3% a year. A little is seen as healthy — it nudges spending and keeps the economy moving. Too much erodes savings fast; too little can signal a stalling economy. Try moving the rate slider to see how small changes compound.
Where do I find the inflation rate to enter?
Most people use the consumer price index published by their national statistics office. In the US that's the Bureau of Labor Statistics CPI; recent annual figures have run roughly 2% to 8% depending on the year.
Should I use the past inflation rate or a future estimate?
For looking back at how much prices have already risen, use the actual rate for that period. For projecting forward, there's no certain number, so test a range — a low, middle, and high rate — rather than trusting one figure.
Is this the same as a cost of living comparison?
No. This shows how prices change over time in one place. A cost of living comparison looks at price differences between two places at the same moment, like moving from one city to another.
Why is my real raise smaller than my pay raise?
If your pay goes up 4% but prices rise 3%, your buying power only improved by about 1%. A raise below the inflation rate actually leaves you able to buy less than before.
Last reviewed June 2026. This tool is for education, not financial advice.