Inflation Impact Calculator
Our Inflation Impact Calculator helps you analyze how inflation affects your purchasing power over time and calculate the future costs of goods and services. Understanding inflation's impact is crucial for effective long-term financial planning and retirement preparation.
Enter your information below to see how inflation will affect your finances over time and to develop strategies to protect your purchasing power.
Inflation Calculator Inputs
Historical Inflation Rates (Last 20 Years)
Inflation Impact Summary
Year-by-Year Breakdown
| Year | Future Value | Cumulative Change |
|---|
Visualization
Practical Implications
Purchasing Power
What costs $1,000 today will cost approximately $0 in 20 years.
This represents a 0.00% loss in purchasing power over this time period.
Retirement Planning
To maintain your current standard of living in retirement, your income will need to increase to account for inflation.
If you need $$1,000 annually today, you'll need approximately $$0 annually in $20 years to maintain the same lifestyle.
Investment Implications
To outpace inflation, your investments need to earn more than 3.00% annually.
An investment that doesn't grow at least as fast as inflation will lose purchasing power over time, even if its nominal value increases.
Fixed Income Impact
If you're on a fixed income that doesn't adjust for inflation, your purchasing power will decline by approximately 0.00% over 20 years.
Social Security benefits include cost-of-living adjustments, but many pension plans do not fully account for inflation.
Note: This calculator uses a constant inflation rate for simplicity. Actual inflation rates vary year to year and across different expense categories. The projections are for educational purposes and should not be the sole basis for financial decisions.