See how inflation changes prices, purchasing power and the real value of money over time.
How the same amount loses purchasing power while the price of the same basket rises.
How the same amount loses purchasing power while the price of the same basket rises.
| Year | Future cost | Purchasing power | Cumulative inflation | Real value of $1 |
|---|
Inflation measures how the general price level changes over time. This calculator compounds an annual inflation assumption to estimate what the same basket of goods may cost in the future and how much purchasing power a fixed amount of money may retain.
The real-return calculation is especially useful for investors because a positive nominal return can still produce weak or negative growth in purchasing power when inflation is high.
When prices rise, the same amount of money buys fewer goods and services. Purchasing power therefore falls approximately by the inverse of compounded inflation.
To preserve purchasing power before taxes and fees, a nominal investment return needs to at least match inflation. A higher return is required to grow real wealth.
No. This version models inflation from the annual rate you enter. It does not invent historical CPI values; country-specific historical datasets can be added when sourced reliably.