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Inflation Calculator

Inflation quietly shrinks what your money can buy. See the real impact over time.

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Historical US average is around 3%

The impact of inflation

In 20 years

$10,000 today will have the buying power of

$5,537

in 20 years

Something costing $10,000 today will cost

$18,061

Purchasing power lost

$4,463

Buying power vs. cost over time

How $10,000 changes over 20 years at 3% inflation

Line chart showing $10,000 over 20 years at 3% inflation. Buying power falls to $5,537 while the same goods cost $18,061. You lose $4,463 in purchasing power.

Why inflation matters

Inflation is the gradual rise in prices that erodes the value of cash over time. Money sitting in a low-interest account loses purchasing power every year inflation outpaces its returns. This is why long-term savings are often invested, historically, diversified investments have outpaced inflation, while cash alone tends to fall behind. These figures use a constant rate for illustration; real inflation varies year to year.

Purchasing Power

$5,537

Value Lost

$4,463