See how rising prices can erode the purchasing power of a dollar amount over time. Free, no account required, and nothing here is financial advice.
See how inflation silently erodes your purchasing power over time.
Future Cost
$1806.11
Purchasing Power
$553.68
Real Value Lost
-$446.32
Each bar shows the real value of $1000.00 after that many years of 3% annual inflation.
This calculator is for educational purposes only and does not constitute financial advice. Actual inflation rates vary year to year and differ across goods and services. Past inflation is not indicative of future rates.
“Purchasing power” is just what your money can actually buy. If prices rise 3% a year, the same dollar buys a little less each year, even though the number on the bill never changes. The bars in this tool show that decline: the same starting amount, worth less and less in today’s terms as the years stack up.
It uses a single constant rate so the effect is easy to see. Real inflation moves around, so this is a way to build intuition, not a forecast of specific prices.
You enter a dollar amount, an assumed annual inflation rate, and a number of years. The tool shows two things: what that amount would cost in the future at that constant rate, and how much real purchasing power the same dollars would have left in today’s terms.
The long-run US average has historically been in the low single digits, often cited around 3%, but it varies a lot year to year and differs across goods and services. The calculator defaults to 3% as a neutral starting point; try a few rates to see the range.
Money sitting in cash slowly loses purchasing power as prices rise. Understanding that "silent" erosion is one reason people consider investing at all. This tool just illustrates the math; it does not tell you what to do about it.
No. It applies one constant rate you choose, which is a simplification. Actual inflation is not constant, so treat the output as an illustration rather than a forecast.
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