Inflation & Purchasing Power Calculator
See how inflation erodes the value of your money over time and calculate future purchasing power.
Future Value Today's Dollars
In 20 years, your $1,000,000 will only buy what $553,676 buys today at 3% inflation.
Purchasing Power Erosion Curve
Performance Forecast
Purchasing Power Breakdown
Year-by-year erosion of your money's value and total cumulative loss.
| Timeline | Future Value | % of Initial | Cumulative Loss |
|---|---|---|---|
| 1 Year 0 | $1,000,000 | 100% | $0 |
| 2 Year 5 | $862,609 | 86% | $137,391 |
| 3 Year 10 | $744,094 | 74% | $255,906 |
| 4 Year 15 | $641,862 | 64% | $358,138 |
| 5 Year 20 | $553,676 | 55% | $446,324 |
| 6 Year 25 | $477,606 | 48% | $522,394 |
| 7 Year 30 | $411,987 | 41% | $588,013 |
| 8 Year 35 | $355,383 | 36% | $644,617 |
| 9 Year 40 | $306,557 | 31% | $693,443 |
| 10 Year 45 | $264,439 | 26% | $735,561 |
| 11 Year 50 | $228,107 | 23% | $771,893 |
The Silent Wealth Killer
Inflation is the steady increase in prices and the decrease in the purchasing power of your money. If your money isn't growing faster than inflation, you are effectively losing wealth every day.π Erasing Your Millions
At a modest 3%** annual inflation, the value of your dollar cuts in half every **24 years. * Year 0: $1,000,000 builds a lifestyle. * Year 20**: That same $1M only buys what **$553,000 buys today.How to Fight Back
1. Invest in Appreciating Assets: Stocks and real estate have historically outpaced inflation. 2. Avoid Excessive Cash: Holding too much cash for too long is a guaranteed loss in purchasing power. 3. TIPS & Gold: Some investors use Treasury Inflation-Protected Securities or precious metals as a specific hedge.Frequently Asked Questions
Q: What is a normal inflation rate? A:** Central banks like the US Federal Reserve typically target a **2% annual inflation rate to keep the economy moving without eroding savings too quickly.Results Inflation & Purchasing Power Calculator
This is a powerful online tool designed to help you calculate your Finance metrics instantly. We are dedicated to providing accurate and easy-to-use financial and life tools.
Community Feedback
"Scary but necessary. Seeing the purchasing power of $1M drop over 20 years is a huge wake-up call."
"Very eye-opening. Helped me explain to my kids why we need to invest for the future."
"Essential for retirement planning. It clearly shows why just saving cash isn't enough to maintain lifestyle."
"Simple and effective. Makes the abstract concept of inflation very concrete."
Explore More Tools
View All Tools β
LLC Filing & Registration Cost Calculator
Estimate the total cost to form and maintain an LLC in any US state, including filing fees and annual taxes.
Mortgage Affordability Calculator
Find out how much home you can afford based on your income, debts, and down payment.
Mortgage Extra Principal Calculator
See how much time and interest you save by adding extra monthly principal payments.