MihsabaHow to use
The inflation calculator shows how compounded price growth changes an amount’s future equivalent cost and purchasing power. Enter a current amount, annual inflation rate and number of years to see future cost, cumulative inflation and remaining purchasing power.
- Enter the current amount or price.
- Enter an assumed annual inflation rate.
- Set the number of years.
- Review future equivalent cost, cumulative inflation and purchasing power.
How it is calculated
Example
Example: at 3% annual inflation for 10 years, an item costing 1,000 today would have an equivalent future cost of about 1,343.92, a cumulative increase of roughly 34.39%.
Important notes
Future inflation is unknown and changes over time. This tool applies the constant rate you choose as a mathematical scenario; it does not forecast actual inflation.
Worked examples and interpreting results
The example shows how constant 3% inflation changes a current price and purchasing power over ten years.
| Case | Calculation | Result |
|---|---|---|
| Future equivalent cost of 1000 | 1000 × 1.03^10 | 1,343.916379 |
| Cumulative inflation | (1.03^10 − 1) × 100 | 34.391638 % |
| Remaining purchasing power of 1000 | 1000 ÷ 1.03^10 | 744.093915 |
How to check the result
A constant rate is a simplified scenario. Actual inflation varies by year, so use the tool to compare assumptions rather than forecast future inflation.
Frequently asked questions
How do I calculate inflation over time?
Multiply the current amount by (1 + annual inflation rate) raised to the number of years.
What is cumulative inflation?
It is the total compounded price increase over the full period, not simply the annual rate multiplied by years.
How does inflation affect purchasing power?
As prices rise, the same nominal amount buys less; dividing by the inflation factor estimates remaining purchasing power.
Does this use an official inflation rate?
No. You enter the rate appropriate to the scenario you want to test.