Inflation Impact Calculator

See how inflation reduces the purchasing power of a dollar amount over time.

USD
%
years

Purchasing Power of Today's Dollar

$744.09

Future Equivalent Needed$1,343.92
Value Lost to Inflation$255.91

Purchasing Power of Today's Dollar vs Number of Years

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Formula

## How Inflation Erodes Purchasing Power Inflation increases the cost of goods over time, meaning each dollar buys less in the future. ### Formula **Future Equivalent = Amount x (1 + Rate)^Years** **Purchasing Power = Amount / (1 + Rate)^Years** The purchasing power formula tells you what your current dollars will be worth in real terms.

Esempio Risolto

$1,000 today with 3% annual inflation over 10 years.

  1. 01Inflation multiplier = (1 + 0.03)^10 = 1.3439
  2. 02To buy what $1,000 buys today, you will need $1,000 x 1.3439 = $1,343.92
  3. 03Purchasing power = $1,000 / 1.3439 = $744.09
  4. 04Value lost = $1,000 - $744.09 = $255.91