Paritian

Finance

Inflation Calculator

What an amount of money will be worth in real terms after years of inflation, and what it would cost.

Results

Value in today's money 7811.98
Future value 12,800.85
Percentage change -21.88 %

What this tool does

Inflation quietly reduces what money can buy, and over a decade the effect is larger than most people expect: at 2.5 % a year, ten thousand loses roughly a fifth of its purchasing power. The calculator shows both directions — the real value of today's money in the future, and the future price of today's basket.

Formula

real value = V ÷ (1 + i)^t

Variables

SymbolMeaningUnit
vAmount
iAnnual inflation rate%
tYears
RVValue in today's money
NVFuture value
LPPercentage change%

Worked example

  • Amount10,000
  • Annual inflation rate2.5 %
  • Years10
  • Value in today's money7811.98
  • Future value12,800.85
  • Percentage change-21.88 %

Limitations

  • This is an informational calculator, not personalised financial advice. Rates, fees, taxes and contract conditions vary between institutions and countries.
  • The result is an estimate based only on the values you type. Real situations often include factors this calculator does not know about.
  • The tool works with whatever currency you use for the inputs; it does not convert between currencies.