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Inflation Calculator
Future value of money, real return
Currency
Amount
Period
yr
Inflation rate (annual)
%
An assumption. Actual inflation varies year to year.Result
Worth in today’s money
7,811.98 USD
Needed for the same purchasing power
12,800.85 USD
Loss of purchasing power
-21.88%
For reference only. It assumes a constant inflation rate; actual prices and returns can differ.
How to use
Work out what an amount will be worth in today’s money after a number of years of inflation, and how much you would need to keep the same purchasing power. Enter a nominal return and an inflation rate to get the real return using the Fisher equation.
Q. What inflation rate should I enter?
A. There is no fixed value; it is an assumption. Use recent consumer price inflation or a long-term target as a guide. Actual inflation varies from year to year.
Q. Is real return just return minus inflation?
A. That is a close approximation, but the exact figure is (1 + nominal return) ÷ (1 + inflation) − 1. The calculator shows both the exact value and the simple difference.