Inflation Calculator
Formula
Future = Amount × (1 + Rate)^Years
Inflation erodes purchasing power over time. $100 today at 3% average inflation will feel like $55 in 20 years. Conversely, $100 from 20 years ago had the purchasing power of $181 today.
Frequently Asked Questions
What is the average US inflation rate?
Historically about 3% per year (2-3% in recent stable periods, higher during crises).
Why does inflation matter?
If your savings don't grow faster than inflation, you're losing purchasing power. A savings account at 1% with 3% inflation means you lose 2% real value per year.