Milo Quell

Free Tool

Inflation Calculator

Money doesn't hold still. See what a sum will actually be worth years from now — and what the same things will cost — at any inflation rate.

$
%
yrs

In 20 years, $1,000 will only buy what

$554

buys today

Same basket will cost

$1,806

Buying power lost

45%

Cash sitting idle doesn't stay still — inflation quietly shrinks it. This is why money that isn't earning at least the inflation rate is slowly losing value every year.

Why idle cash quietly shrinks

Inflation is the slow tax nobody sends you a bill for. At a modest 3% a year, money loses roughly a quarter of its buying power over a decade and nearly half over two. The dollar in your account keeps its number, but the number of things it can buy keeps falling.

This is the real reason “safe” cash isn't entirely safe. Money earning less than the inflation rate is losing value in real terms every single year, even as the balance looks unchanged. Understanding that gap is the first step to deciding what to do about it.

Frequently asked

What is inflation, simply?

Inflation is the gradual rise in prices over time, which means each unit of money buys a little less than it did before. A 3% inflation rate means something that costs $100 this year costs about $103 next year — and your $100 now buys about 3% less.

How do you calculate the future buying power of money?

Divide the amount by (1 + the inflation rate) raised to the number of years. At 3% inflation, $1,000 in 20 years has the buying power of about $554 today. The calculator does this both ways: what your money will really be worth, and what the same purchases will cost.

What inflation rate should I use?

Central banks in many countries target around 2%. Long-run historical averages in the US sit closer to 3%. For a cautious estimate use 3–4%; for a specific period, use the actual reported rate. The calculator lets you set whatever rate you want to test.

How do you protect money from inflation?

Money that earns less than the inflation rate loses real value every year. Keeping long-term money in assets that historically outpace inflation — rather than idle cash — is the standard defence, though every asset carries its own risks. The key insight is that "safe" idle cash is not actually safe from inflation.

Keep reading

Why inflation can make everyone feel poorer even when their paycheck goes up.

Why inflation makes everyone feel poorer even when wages rise →
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