Finance calculator

Inflation / Purchasing Power Calculator

Estimate future cost and purchasing power from an annual inflation rate.

FormulaFuture cost = current cost x (1 + inflation rate)^years

Formula

Inflation formula

Future cost = current cost x (1 + inflation rate)^years

At 3% inflation, 1,000 grows to about 1,159 after 5 years.

FAQ5 common questions for this calculator.

FAQs

How is inflation calculated?+

The calculator compounds the annual inflation rate over the selected number of years.

How does the Inflation / Purchasing Power Calculator calculate the result?+

For the Inflation / Purchasing Power Calculator, it uses the Inflation formula: Future cost = current cost x (1 + inflation rate)^years. At 3% inflation, 1,000 grows to about 1,159 after 5 years.

What information do I need to use the Inflation / Purchasing Power Calculator?+

For the Inflation / Purchasing Power Calculator, enter an annual inflation rate. Keep the units consistent with the calculator fields and compare your setup with the worked example on the page.

How accurate is the Inflation / Purchasing Power Calculator?+

Inflation / Purchasing Power Calculator is accurate for the rates, amounts, dates, and rules entered. It uses the Inflation formula shown on this page. Real products can differ because of fees, taxes, contract terms, or changing official thresholds.

What should I check before using the Inflation / Purchasing Power Calculator result?+

For the Inflation / Purchasing Power Calculator, check an annual inflation rate, then compare the Inflation formula and worked example with the contract or source you will rely on. Fees, tax year, currency, and payment timing can change the final decision.

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Finance guide

How to use the Inflation / Purchasing Power Calculator

Estimate future cost and purchasing power from an annual inflation rate. The page also explains the inflation formula and shows a practical example: At 3% inflation, 1,000 grows to about 1,159 after 5 years.

  1. 1

    Enter your details

    Enter an annual inflation rate, then complete any other fields shown in the calculator.

  2. 2

    Check the calculation

    Review the result alongside the inflation formula: Future cost = current cost x (1 + inflation rate)^years.

  3. 3

    Compare scenarios

    Change one or more inputs to see how they affect the inflation / Purchasing Power Calculator result before you use the estimate.