Method
Future cost = amount x (1 + inflation rate / 100)^years. Purchasing power = amount / (1 + inflation rate / 100)^years. Price increase = future cost - amount.
Future cost answers "what will something that costs this much today cost later"; purchasing power answers "what will this much money buy later in today's terms".
Worked example
| Amount | $1,000 |
|---|
| Inflation rate | 3.2% |
|---|
| Years | 10 |
|---|
| Future cost | $1,370 |
|---|
| Purchasing power | $730 |
|---|
| Price increase | $370 |
|---|
Assumptions and limits
- Assumes a single constant inflation rate; actual inflation changes year to year.
- Uses the rate you enter and does not fetch official CPI data.
Educational estimate only. It is not financial, tax, legal, or investment advice.
FAQ
How do I calculate the future cost of something?
Multiply the price by (1 + inflation rate) for each year. With the defaults ($1,000 at 3.2%% for 10 years) the future cost is $1,370.
What is purchasing power?
The value of today's money in future terms: amount divided by the same growth factor. With the defaults $1,000 would buy only what $730 buys today.
What inflation rate should I use?
Use a long-run average for your currency or a recent official CPI figure; the tool does not provide official data.
What is the price increase?
Future cost minus the amount. With the defaults it is $370.
Is my data stored?
No. The calculation runs in your browser and the inputs are not sent to or saved by this site.