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This content was prepared with an AI-assisted workflow (AI-assisted editorial workflow) for information only, not investment or tax advice. Actual tax and investment outcomes depend on account type, product structure, current rules, and personal circumstances.
How inflation affects your money over time
Inflation is the general rise in prices over time. Even at a modest 3% annual rate, $10,000 today would require about $18,000 in 20 years to buy the same goods and services. This calculator shows both the future nominal amount needed to preserve today’s purchasing power and the present value of a future sum, letting you see erosion from both directions.
Reading the two output columns
The “future cost” column answers: how much money will I need in year N to buy what I can buy today? The “present value” column answers: what is a fixed future amount worth in today’s dollars? The purchasing power lost percentage summarizes the overall erosion over the full period. Actual inflation varies each year and differs by country and spending category.
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Method and limits
Formula
future_cost = amount × (1 + i)^n ; present_value = amount ÷ (1 + i)^n
Worked example
At 3% annual inflation, matching today's 1,000,000 USD of purchasing power in 30 years requires about 2,427,000 USD. Conversely, 1,000,000 USD received 30 years from now is worth roughly 412,000 USD today — about 58.8% of purchasing power is lost.
Assumptions
- Returns, yields, and inflation are assumed constant for the whole period at the value you enter. Real markets are not.
- All math runs in your browser; inputs are never sent to a server.
- Currency display uses a fixed exchange rate captured on the date below, not a live rate.
What is not included
- Taxes (dividend/capital gains), trading commissions, currency conversion costs
How to verify this yourself
- Put the same inputs into the formula above in a spreadsheet — you should reproduce these results exactly.
- If you find an error, tell us via the contact page and we will verify and correct it. Contact