Inflation Calculator

Inflation is the rate at which the general level of prices rises over time. When prices go up, each unit of currency buys a little less than it did before, so the same money stretches less far.

As prices rise, a fixed amount of money buys fewer goods and services. This tool divides your amount by (1 + rate) compounded over the years, showing what that money would actually buy in today's terms later on.

It compounds your amount by the inflation rate each year: amount times (1 + rate) to the power of the number of years. That gives the price of the same basket of goods after inflation.

Use a realistic long-run average for your country. Many developed economies target around 2 to 3 percent, while higher-inflation economies often run well above that. Check your local consumer price index for guidance.

A nominal value is the plain face amount of money. A real value adjusts for inflation so amounts from different years can be compared on equal footing. The purchasing power figure here is a real, inflation-adjusted value.

No. It assumes a steady average rate you choose. Real inflation varies year to year, so treat the result as an illustration of how prices and value can drift, not a forecast.