Inflation Calculator

Inflation is the rate at which the general price level of goods and services rises, decreasing purchasing power over time. If inflation is 3% annually, something costing $100 today will cost $103 next year. Your savings need to earn more than inflation to maintain real value - otherwise, you\\

Enter the current amount, the expected inflation rate, and the number of years. The calculator shows what equivalent purchasing power you\\

Historical US inflation has averaged about 3% annually over the long term, though it varies significantly year to year. For conservative financial planning, use 3-4%. For healthcare and education costs, consider using 5-7% as these typically rise faster than general inflation.

Inflation significantly impacts retirement because you need income for potentially 20-30+ years. A $50,000 annual need today becomes over $90,000 in 20 years at 3% inflation. Your retirement savings and withdrawals must account for this erosion of purchasing power.

Treasury Inflation-Protected Securities (TIPS), I-Bonds, stocks (which historically outpace inflation long-term), real estate, and commodities can help hedge against inflation. Diversification across asset classes provides the best protection against inflation\\