See how inflation erodes purchasing power over time. Enter an amount, time period, and inflation rate to understand the future cost of goods and the real value of your money.
Future Cost of Same Goods
$134.39
Purchasing Power of Your $
$74.41
Total Inflation
34.4%
Value Lost
$25.59
At 3% inflation, $100 loses 26% of its purchasing power over 10 years.
$100 today will have the buying power of
$74.41
in 10 years
Out of every $10, you keep:
To maintain the same purchasing power as $100 today, you would need $134.39 in 10 years. This means prices effectively increase by 34% over this period.
Low (1.5%)
Japan-style deflation era
$86.17
-14%
Moderate (2.5%)
Fed target range
$78.12
-22%
Average (3.0%)
US historical average
$74.41
-26%
Elevated (5.0%)
Post-pandemic levels
$61.39
-39%
High (8.0%)
1970s-80s era
$46.32
-54%
Shows what $100 would be worth in 10 years at different inflation rates
Inflation is one of the most important economic forces affecting your finances. It silently reduces the value of cash savings, influences interest rates, and drives the cost of living higher over time. Understanding how inflation compounds helps you make better decisions about saving, investing, and retirement planning.
Inflation is the rate at which the general level of prices for goods and services rises over time, reducing the purchasing power of money. If inflation is 3% per year, something that costs $100 today will cost about $103 next year.
In the United States, the historical average inflation rate since 1913 has been about 3.2% per year. However, rates vary widely — from near 0% to over 14% in the early 1980s. The Federal Reserve targets around 2% annual inflation.
If your savings earn less interest than the inflation rate, your money loses purchasing power over time. For example, $10,000 in a 1% savings account with 3% inflation effectively loses about 2% of its value each year. This is why investing is important for long-term goals.
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