Inflation & purchasing
power calculator
Explore how a constant annual inflation assumption changes the future cost of today’s spending.
Plan ahead · Inflation scenarioExplore purchasing power
Your assumed inflation rate remains constant. Actual prices and household spending patterns will vary.
More clarity, one calculation at a time.
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Compare two amounts to find the increase or decrease in dollars and percent.
Open calculator ↗Savings Growth Calculator
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Open calculator ↗How to use this calculator
- Enter the current cost of a purchase or spending budget.
- Choose an annual inflation assumption for your scenario.
- Select the number of years from now.
- Read the estimated future cost and additional dollars needed.
What would $2,000 cost after five years?
At an assumed 3% annual inflation rate, a purchase costing $2,000 today would cost about $2,318.55 in five years. That is $318.55 more, or a cumulative price increase of approximately 15.93%.
| Cost today | Inflation assumption / period | Estimated future cost |
|---|---|---|
| $100.00 | 3% / 1 year | $103.00 |
| $2,000.00 | 3% / 5 years | $2,318.55 |
| $2,000.00 | 0% / 5 years | $2,000.00 |
This forward-looking tool answers how many future dollars might be needed for the same purchase. It does not convert historical dollar values using published CPI data. The annual rate stays constant in each scenario.
How this calculator works
The tool compounds your chosen annual inflation rate over the selected period. It estimates the future dollars needed to buy what your current amount buys today. This is a scenario calculator, not a historical CPI lookup or forecast.
Try different inputs to compare scenarios. Results are estimates for general information.
A few helpful answers.
Is the default a forecast?
No. The 3% starting value is an editable example. No live inflation data is used.
What does purchasing power mean?
It is the amount of goods or services a sum of money can buy. Rising prices reduce what a fixed amount can purchase.
Is this a historical inflation calculator?
No. It uses the rate you enter to model future costs. It does not retrieve historical CPI values or report measured inflation.
How can I compare an increase with rising costs?
Estimate your income increase with the COLA or percentage change calculator, then model spending with this tool. Use the same time period and remember that your personal expenses may change at different rates.