Inflation calculator
Inflation is the slow rise in prices that makes the same money buy less. See what it does to a price, to your savings, and to the return you think you are earning.
The same things in 10 years
$1,344
Cost $1,000 today
What $1,000 in cash will buy
$744
In today's prices
Prices double in
23.4 years
Your real return
1.94% a year
Your savings would buy $1,212 of today's shopping
See the year-by-year table
| Year | Cost of the same things | What the cash buys |
|---|---|---|
| 1 | $1,030 | $971 |
| 2 | $1,061 | $943 |
| 3 | $1,093 | $915 |
| 4 | $1,126 | $888 |
| 5 | $1,159 | $863 |
| 6 | $1,194 | $837 |
| 7 | $1,230 | $813 |
| 8 | $1,267 | $789 |
| 9 | $1,305 | $766 |
| 10 | $1,344 | $744 |
How this calculator works
It grows a price by your inflation rate once a year: after one year at 3%, 1,000 of shopping costs 1,030, then 1,060.90, and so on. Read the other way, the same 1,000 kept as cash buys less each year. Both lines on the chart show the same effect from two sides.
Your real return is what your money grows by after inflation. It is (1 + return) ÷ (1 + inflation) − 1, which is close to the return minus inflation. If your savings earn less than inflation, the balance rises while what it buys falls.
An example
At 3% inflation, a basket of shopping that costs 1,000 today costs about 1,344 in 10 years. Kept as cash, 1,000 would buy only about 744 of today's shopping by then. Prices double in about 23 years at 3%, about 12 years at 6% and about 35 years at 2%. A 5% savings rate with 3% inflation is a real return of about 1.9% a year.
Which inflation rate to use
- Your country's official rate. National statistics offices publish consumer price inflation every month. Recent years can run well above or below the long-run average.
- Your own basket. Rent, school fees or medical costs can rise faster than the headline rate. Use a higher rate for those goals.
- A range. Try 2%, 4% and 6% to see how sensitive your plan is.
Questions people ask
If inflation is falling, why are prices still high?
Falling inflation means prices are rising more slowly, not that they are going back down. Our explainer on falling inflation walks through why.
Can this tell me what money from a past year is worth today?
Enter the average inflation rate for the years in between and the number of years, and read the future cost figure. For exact past values, use your national statistics office's own calculator, which uses the real price index.
What is the rule of 72?
A shortcut: 72 divided by the inflation rate gives roughly the years until prices double. At 3% that is 24 years, close to the 23.4 this calculator works out exactly.
Read the explainers
For education only, not financial advice. Results are estimates from the numbers you enter. Returns are illustrative, not a forecast or a promise, and real results depend on fees, taxes, timing and your lender's or provider's exact terms. See our editorial policy.
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