Calculate Inflation Impact
$
Historical US average: 3.0%
1%3%8%
To calculate real (inflation-adjusted) returns
0%7%12%
$180,611
Cost of Same Goods in 20 Years
$55,368
$100K Buys in 20 Years
-44.6%
Purchasing Power Lost
3.88%
Real Return (After Inflation)
$386,968
$100K Invested at 7%
Real-World Examples at 3% Inflation
$5 coffee today$9.03
$50K car today$90,306
$400K house today$722,447
$1M retirement today$1.81M
Purchasing Power Over Time

Understanding Inflation

Inflation is the silent tax on your savings. Even at 3% inflation, prices double roughly every 24 years. This is why keeping money in a savings account earning 0.5% means you're actually losing purchasing power.

Future Price = Current Price ร— (1 + inflation)^years
Real Return = ((1 + nominal return) รท (1 + inflation)) - 1

To maintain purchasing power, your investments must outpace inflation. This is why financial advisors recommend holding stocks and real assets that historically beat inflation over time.

Disclaimer: This calculator is provided for educational and informational purposes only. Results are estimates based on the inputs you provide and may contain errors or inaccuracies. This tool does not constitute professional financial, investment, or tax advice. Individual circumstances vary, and you should consult with a qualified financial advisor, accountant, or other professional before making any financial decisions. We make no guarantees regarding the accuracy, completeness, or reliability of the calculations or results provided.

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