📉
Inflation Calculator
Calculate inflation impact on purchasing power
Inflation Calculator
$
%
Average: 2-3%
Future Value
$13,439
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Present Value
$10,000
📊
Total Inflation
$3,439
📈
Purchasing Power Loss
25.6%
⬇️
Inflation Impact
Today (2024)
$10,000
Future (2034)
$13,439
Total Inflation
$3,439
Power Loss
25.6%
What This Means
In 2034, you would need $13,439 to have the same purchasing power as $10,000 today. That's an increase of $3,439 due to 3% annual inflation.
Value Over Time
Cumulative Inflation Impact
Year-by-Year Breakdown
| Year | Value | Annual Inflation | Cumulative |
|---|---|---|---|
| 2024 | $10,000 | - | $0 |
| 2025 | $10,300 | +$309 | $309 |
| 2026 | $10,609 | +$318 | $627 |
| 2027 | $10,927 | +$328 | $955 |
| 2028 | $11,255 | +$338 | $1,293 |
| 2029 | $11,593 | +$348 | $1,641 |
| 2030 | $11,941 | +$358 | $1,999 |
| 2031 | $12,299 | +$369 | $2,368 |
| 2032 | $12,668 | +$380 | $2,748 |
| 2033 | $13,048 | +$391 | $3,139 |
| 2034 | $13,439 | +$403 | $3,542 |
Low Inflation (2%)
$12,190
Value after 10 years at 2% inflation
Moderate Inflation (3%)
$13,439
Current calculation (3% annually)
High Inflation (5%)
$16,289
Value after 10 years at 5% inflation
Understanding Inflation
What is Inflation?
- General increase in prices over time
- Reduces purchasing power of money
- Measured by CPI (Consumer Price Index)
- Target rate: 2-3% in most countries
Protecting Against Inflation
- Invest in stocks (historically beat inflation)
- Real estate tends to appreciate with inflation
- TIPS (Treasury Inflation-Protected Securities)
- Commodities like gold as hedge
Historical Inflation Rates (US)
- 1970s: ~7% (high inflation era)
- 1990s-2000s: ~2-3% (target range)
- 2020-2022: ~5-8% (post-pandemic spike)
- Long-term average: ~3% (since 1913)
Rule of 72
Divide 72 by inflation rate to find years for prices to double:
- At 2% inflation: 72 ÷ 2 = 36 years to double
- At 3% inflation: 72 ÷ 3 = 24 years to double
- At 6% inflation: 72 ÷ 6 = 12 years to double