Inflation Impact Calculator
See how much your money is really worth in the future after inflation. Enter any amount, choose an inflation rate, and see your future purchasing power — and what you've silently lost.
At 3.5% inflation, $100,000 today will only buy $50,000 worth of goods in 20 years. Inflation is the tax nobody talks about.
3.4%
US 20-year average annual inflation rate
34%
of value lost at 3.5% inflation over 10 years
$0.42
what $1 from 1985 buys today, inflation-adjusted
What inflation is doing to your money right now
The invisible tax
Inflation doesn't announce itself — it slowly erodes the value of cash held in low-yield accounts. A $50,000 emergency fund earning 0.5% loses real purchasing power every year at 3%+ inflation.
Inflation and long-term planning
Retirement calculators that don't account for inflation dramatically understate the savings required. A $3,000/month budget today will need $5,400+/month in 20 years at just 3% inflation.
The 72 rule
Divide 72 by the inflation rate to find how many years it takes to cut purchasing power in half. At 3%: 24 years. At 7%: about 10 years. At 9.1% (2022 peak): less than 8 years.
The purchasing power formula
Future buying power = today's amount ÷ (1 + inflation rate)ⁿ. If you have $10,000 today and inflation averages 3.5% per year, in 20 years that $10,000 only buys $4,975 worth of goods.
To maintain purchasing power, your money must grow faster than inflation. Any savings vehicle returning less than the inflation rate is losing real value every year — even if the nominal balance rises.