Based on the rate you enter, not an official inflation forecast or financial advice.
Example
$1,000 today, at an assumed 3% annual inflation rate, over 10 years:
1000 × (1 + 3/100)^10 = 1000 × 1.3439 = 1343.90
You would need about $1,343.90 in 10 years to have the same purchasing power as $1,000 today, at that rate.
Example
$500 at an assumed 2.5% annual rate over 5 years:
500 × (1 + 2.5/100)^5 = 500 × 1.1314 = 565.70
You'd need about $565.70 in 5 years to match today's purchasing power of $500, at that rate.
Example
$10,000 at an assumed 6% annual rate over 20 years (a high, illustrative rate):
10000 × (1 + 6/100)^20 = 10000 × 3.2071 = 32071
Over 20 years at 6%, the equivalent amount more than triples, showing how much compounding matters over long periods.
When to use this calculator
Use this to see the effect of a chosen compounding rate over time — for planning purposes, not as an official inflation forecast. For a single one-time percentage change (not compounded over years), use the percentage change calculator instead.
Frequently asked questions
Where does the inflation rate come from?
You choose it. This calculator doesn't pull live or historical inflation data — enter whatever rate you want to model.
Can I use this for other kinds of compounding, like investment growth?
Yes, the math is the same compounding formula used for investment growth projections; only the label changes.
Why does a small rate make such a big difference over many years?
Because the rate compounds — it's applied to an already-grown amount each year. See why compounding isn't simple addition for more on this effect. Related: compounding over time and salary increase calculator.