Real return
Adjust a nominal return for fees and inflation to estimate a change in buying power.
Economics 101Economics 101
Inflation & buying power calculator
Same money. Fewer oats.
Your numbers
Estimate future prices and how inflation can nibble away at the money you hold.
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THE MATH, WITHOUT THE MYSTERY
What’s actually happening here?
Inflation describes rising prices. When prices rise, the same cash buys less. This tool looks at two sides: the future cost of today’s basket, and the future buying power of unchanged cash.
To express that unchanged cash in today’s money, divide it by (1 + inflation)^years. Historical inflation calculations instead use observed price-index ratios; this tool deliberately uses your own constant-rate assumption.
THE FORMULA
Future equivalent price = Amount × (1 + inflation)ʸᵉᵃʳˢ
A small example
If a basket costs 100 now and inflation is 3% for 10 years, the future basket costs about 134.39. An unchanged 100 then has about 74.41 of today’s buying power.
GOOD QUESTIONS
A few things worth knowing.
Why not subtract inflation every year?
Price changes compound. A 3% rise applies to the new, higher price next year, not just to the original price.
Is this a historical inflation calculator?
No. It models a hypothetical future at a rate you choose. Use an official price index for a historical, country-specific comparison.