Finance calculator
Inflation / Purchasing Power Calculator
Estimate future cost and purchasing power from an annual inflation rate.
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.
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?+
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?+
Estimate future cost and purchasing power from an annual inflation rate.
How accurate is the Inflation / Purchasing Power Calculator?+
Inflation / Purchasing Power Calculator applies the formula and assumptions shown on this page. Results may be rounded for readability, so verify changing rates, thresholds, medical guidance, or legal rules with the cited source or a qualified professional.
What should I check before using the Inflation / Purchasing Power Calculator result?+
Check that the units, dates, rates, and assumptions match your situation. Change one input at a time to understand which values have the largest effect on the result.
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
Enter your details
Enter an annual inflation rate, then complete any other fields shown in the calculator.
- 2
Check the calculation
Review the result alongside the inflation formula: Future cost = current cost x (1 + inflation rate)^years.
- 3
Compare scenarios
Change one or more inputs to see how they affect the inflation / Purchasing Power Calculator result before you use the estimate.
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