Inflation Calculator
See how inflation erodes your purchasing power over time.
Enter values above to see results
How to use this calculator
Enter your assumptions above and review how projected outcomes change as you adjust contribution amount, rate of return, timeline, or withdrawal values. Testing conservative, moderate, and optimistic scenarios can help you understand a realistic range of possible results.
Start by using realistic estimates based on your personal situation. If unsure about expected returns, use historical average returns but recognize that past performance does not guarantee future results. You can experiment with different assumptions by changing one variable at a time and observing how each factor affects your outcome. This helps build intuition for how contributions, time horizon, and rate of return interact.
Assumptions and limitations
Calculator outputs are educational projections, not guarantees. Real outcomes can differ due to market volatility, inflation, taxes, fees, and personal circumstances. Use these estimates as planning support and combine them with broader research before making financial decisions.
This calculator assumes consistent investment behavior, reinvested returns, and doesn't account for withdrawals beyond those specified or emergency changes to your plan. For a personalized financial plan, consult with a qualified financial advisor who can review your complete situation. Our goal is educational—to help you understand the mechanics of compound growth and the impact of key variables on long-term wealth building.
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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