Inflation Calculator
The inflation calculator shows what an amount of money will cost in the future at a given yearly inflation rate, what it is worth in today’s buying power, or which average inflation rate lies between an old price and a new one. It works in any currency.
How inflation compounds
Prices rise by a percentage each year, and each rise builds on the last. After n years at rate r, something that costs 1 today costs (1 + r)n.
Future cost = amount × (1 + rate)years
Buying power of today's money later = amount ÷ (1 + rate)years
Average rate = (new price ÷ old price)1/years − 1
Questions people ask
What inflation rate should I use?
Use the official CPI average for your country over the period, or a long-run planning figure such as 2% to 4% for stable economies. Higher-inflation economies need higher numbers.
Why do savings lose value?
If your savings earn less than inflation, the same money buys less each year. That is called a negative real return.
How do I find inflation between two years?
Choose the rate option, then enter the old price, the new price and the number of years.