Budgeting & Income
Inflation Calculator
Inflation is a silent tax on cash. See both directions of its bite: what today's expenses will cost in the future at a given inflation rate, and what a dollar amount kept under the mattress will actually buy — a case for making long-term money outgrow the rate.
US CPI has averaged ~3% over the long run; the Fed targets 2%.
What today's amount will cost in 20 years
$18,061
- What this cash will be worth in today's dollars
- $5,537
- Purchasing power lost
- 44.63%
How this calculator works
Future cost multiplies by (1 + rate)^years; purchasing power divides by the same factor. This is the constant-rate model — real CPI wobbles year to year, so treat results as a planning baseline (a historical-CPI mode using official BLS data is on our roadmap).
Try an example
Frequently asked questions
How does inflation work?
Prices rise a few percent a year on average, so each dollar buys slightly less. The effect compounds like interest in reverse: at 3%, prices double roughly every 24 years — meaning a fixed pile of cash loses half its real value over that span.
What inflation rate should I use for planning?
The Federal Reserve targets 2%; US CPI has averaged about 3% over the past century, with painful spikes (over 9% in mid-2022). Planning at 3% is the common default; stress-test important plans at 4%.
How do I protect savings from inflation?
Match the horizon to the tool: high-yield accounts and T-bills currently pay near or above inflation for short-term cash; for long horizons, assets with real growth — diversified stocks, TIPS (Treasury bonds indexed to CPI), I Bonds, real estate. The one guaranteed loser over decades is zero-yield cash.
Why do my retirement numbers need inflation adjustment?
Because a $1M nest egg 30 years from now buys what ~$412,000 buys today at 3% inflation. Either project in 'real' terms (subtract inflation from your return assumption) or inflate your spending target — mixing nominal returns with today's spending is planning's most common silent error.
Related calculators
Retirement Calculator
Project your retirement savings: what your balance could reach by retirement age and the monthly income it could sustainably provide.
Compound Interest Calculator
See how your savings grow with compound interest and monthly contributions — final balance, interest earned, and a year-by-year growth table.
Savings Calculator
Watch your savings account grow: enter your balance, monthly deposit, and APY to see the future value and every dollar of interest along the way.
Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.