Inflation Calculator
See how inflation erodes your purchasing power over time.
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How Inflation Affects Your Money
Inflation is the gradual increase in prices over time. While 2-3% annual inflation may seem small, it compounds and significantly reduces your purchasing power over decades.
What This Calculator Shows
Future Cost — How much today’s goods will cost in the future
Purchasing Power — What your current money will be worth in the future
Value Lost — The dollar amount lost to inflation
Example
With 3% annual inflation, $100,000 today will have the purchasing power of only $74,409 in 10 years. That means you lose over $25,000 in real value by simply holding cash.
How to Beat Inflation
Invest in assets that outpace inflation — stocks have historically returned 7-10% annually
Consider Treasury Inflation-Protected Securities (TIPS)
Real estate often appreciates faster than inflation
Avoid keeping large amounts in low-interest savings accounts