See how inflation erodes the purchasing power of your money over time.
Today's Value
Future Equivalent
Purchasing Power Lost
In other words:
Inflation is the rate at which prices rise over time, reducing purchasing power. A dollar today buys less than a dollar 10 years ago.
The Federal Reserve targets 2%. Historically, US inflation averages about 3% per year.
At 3% inflation, $100,000 in savings loses about 2% per year if earning 1%. Over 20 years, it's worth only ~$54,379 in today's dollars.
Invest in stocks (avg 10%/yr), real estate, TIPS, or I-Bonds — assets that historically outpace inflation.
⚠️ Disclaimer
This calculator is for educational purposes only. Actual inflation varies by category and region.