Free Inflation Calculator - Calculate Purchasing Power
Calculate how inflation affects purchasing power over time.
Formula & Methodology
This formula calculates the compound effect of inflation over time, showing how much more money is needed to maintain the same purchasing power.
- FV = PV × (1 + r)^t
Worked Example
Using the Inflation Calculator: apply the formula above to your input values. For instance, FV = PV × (1 + r)^t. The tool performs each step instantly and shows the result.
Frequently Asked Questions
How does inflation affect my money?
It erodes purchasing power over time, so a fixed amount buys less in the future than it does today.
How is the inflation adjustment calculated?
It grows your amount by the annual inflation rate over the chosen years to show equivalent future or past value.
Why should I care about inflation when investing?
Your real return is your investment return minus inflation, so beating inflation is essential to actually grow wealth.