Inflation Calculator
See how inflation erodes purchasing power over time.
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%
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What today's amount will buy in the future
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Value eroded by inflation
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How much you'll need to maintain same purchasing power
Inflation Over Time
| Year | Purchasing Power | % Remaining | Equivalent Needed |
|---|
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What is inflation?
Inflation is the rate at which prices for goods and services increase over time, reducing purchasing power.
What's a typical inflation rate?
Central banks typically target 2% annual inflation. Historical US average is around 3% per year.
How does inflation affect investments?
Investments need to beat inflation to generate real returns. A 7% nominal return with 3% inflation gives 4% real return.