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How prices change in value over time with inflation.
Free to use, no sign-up required. Inflation Calculator is one of 198 tools built into Xenition, alongside a chat that can use them for you.
Shows how inflation changes the value of money over time: what today’s purchases will cost in the future, and what today’s amount will be worth then.
The growth factor is (1 + rate ÷ 100)^years, compounded yearly. Cost in future = amount × factor. Future buying power = amount ÷ factor, the value of today’s money measured in today’s prices.
At 3% a year for 10 years the factor is 1.3439. Something costing 1,000 today would cost 1,343.92, and 1,000 kept in cash would buy only what 744.09 buys today.
One multiplies by the factor and the other divides by it. Prices rising 34.4% means money loses 25.6% of its buying power, not 34.4%.
Many central banks target about 2% a year, while long-run averages in the US have been closer to 3%. For a range, run the numbers at a low and a high rate.
You do not have to open Inflation Calculator to use it. Ask Xenition in plain language and it runs the right tool, then carries the answer into whatever you are working on — a document, a spreadsheet, a deck.