We show how inflation changes the value of money over time: what a given amount today will cost in the future, and what today's dollars will be worth then.

Step by step

1. Future cost grows the amount at the inflation rate for the number of years.
2. Purchasing power discounts the amount by inflation over the same period.

The math

futureCost = amount × (1 + inflation)^years; purchasingPower = amount ÷ (1 + inflation)^years.

Sources & assumptions

• Standard compound-inflation math (public domain); the inflation rate is a shown, configurable assumption.

Note: Nothing proprietary.

1. This is an educational illustration using a constant inflation assumption shown with your results.