My Compound Interest - Personal Finance Projection
Inflation & Purchasing Power

Inflation Calculator

Use this inflation calculator and purchasing power calculator to compare past money values, estimate future money values, set an inflation rate and review year by year results.

Calculation mode Switch between historical comparison and future planning.
The value you want to compare across time.
Used for inputs, results and exports.
Historical base year
2000
Fixed to today
2026
2026 Fixed to today
Average annual inflation assumption
2.5%

Year-by-year inflation table

Annual view of the original amount, adjusted amount and cumulative inflation.

Year Original amount Inflation adjusted amount Difference Cumulative inflation
Adjust the calculator to see your inflation table.

How this inflation calculator works

Use it as an inflation calculator, purchasing power calculator, or future inflation calculator for quick planning estimates.

Inflation and purchasing power

Inflation reduces what the same amount of money can buy over time. Purchasing power compares the real value of money across different years, so a nominal amount can be translated into a more useful planning estimate.

Past mode estimates what an old amount is worth today. Future mode estimates how much may be needed to maintain the same buying power later. The year by year table helps show how inflation compounds over time.

Inflation calculator example

For example, enter €10,000, set the start year to 2000, use a 2.5% inflation rate and keep Past to Present mode active. The calculator estimates the inflation adjusted value based on these inputs.

The result changes when the inflation rate or time horizon changes because more years and higher rates compound into a larger price-level adjustment.

Methodology

The calculator uses adjusted amount = original amount x (1 + inflation rate) ^ years. Past to Present mode compares a historical amount with today. Present to Future mode estimates how much money may be needed in a target year to keep similar purchasing power.

The rate is treated as a constant average annual inflation assumption, and inflation compounds year after year. Real inflation varies by country, year and spending category, so results are estimates for planning only and are not financial advice.

Inflation calculator guide

Learn how to read the results, compare past and future values, and decide which inflation rate is reasonable for your planning horizon.

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How inflation affects savings

Inflation can quietly reduce cash purchasing power even when your nominal balance is unchanged or growing slowly.

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What is inflation?

Review the basics of inflation, why prices rise, and how inflation changes the real value of money over time.

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Inflation rate explained

Understand what an inflation rate measures and why different rates can lead to very different long-term projections.

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Plan a savings target

Once you understand your future target, estimate the monthly saving needed to reach it.

Open calculator →
Try our Compound Interest Calculator →

Inflation FAQ

Use these answers as planning references, not guarantees. Real inflation changes by country, by period, and by the basket of goods that matters most to your household.

An inflation calculator estimates how the value of money changes over time. It can compare past money values with today or estimate how much may be needed in the future to keep similar purchasing power.

The calculator uses adjusted amount = original amount x (1 + inflation rate) ^ years. The inflation rate is treated as an average annual rate, so inflation compounds year after year.

Purchasing power is how much goods and services your money can buy. When prices rise, the same amount of money usually buys less, so purchasing power falls.

Past to Present mode estimates what an older amount is worth today. Present to Future mode estimates how much money may be needed in a future year to maintain similar buying power.

Inflation reduces the real value of cash savings over time. If your savings earn less than inflation, your balance may rise in nominal terms while buying less in real terms.

Use an inflation rate that matches the country, time period and spending category you are modeling. For broad long-term planning, many people test several assumptions rather than relying on one rate.

Yes. Inflation compounds because each year of price increases builds on the previous year's higher price level. A steady inflation rate can create a much larger cumulative change over long periods.

No. This calculator is an educational planning tool. Results are estimates and do not account for taxes, fees, actual market returns or your personal financial situation.