Inflation Calculator

About the Inflation Calculator

The Inflation Calculator helps you understand how inflation affects the purchasing power of money over time. It calculates the future value of an amount (how much today's money will be worth in the future) or the present value (what an amount in the future was worth in the past), adjusted for inflation.

Inflation: The rate at which the general level of prices for goods and services increases, reducing the purchasing power of money.

Use this calculator to plan investments, savings, or understand historical purchasing power.

• Features:
  • Calculates future value (\( FV = PV \times (1 + i)^n \)) and present value (\( PV = FV \div (1 + i)^n \)).
  • Inputs include initial amount (\( PV \)), annual inflation rate (\( i \)), and time period (\( n \)).
  • Keypad includes digits (0–9) and decimal point (.).
  • Displays step-by-step calculations in LaTeX format.
  • Clear and backspace functionality, with a "Copy" button for results.
  • Uses MathJax for professional rendering of mathematical expressions.
• Practical Applications: Useful for financial planning, retirement savings, investment analysis, and historical cost comparisons.
• How to Use:
  • Enter the initial amount (\( PV \), in USD, e.g., current savings).
  • Enter the annual inflation rate (\( i \), in %, e.g., 3 for 3%).
  • Enter the time period (\( n \), in years).
  • Use the keypad to input digits and decimal points.
  • Click "Calculate" to compute the inflation-adjusted values.
  • Use "Clear" to reset or "⌫" to delete the last character.
  • Use "Copy" to copy the results and steps.
  • Share or embed the calculator using the action buttons.
• Helpful Tips:
  • All inputs must be non-negative numbers.
  • Use average historical inflation rates (e.g., 2–3% in the U.S.) for estimates.
  • For future value, the result shows how much more money you'll need to maintain purchasing power.
  • For present value, the result shows what a future amount is worth today.
  • Inflation rates vary by country and time; check reliable sources for accuracy.
• Examples:
  • Example 1: Future Value:
    • Inputs: \( PV = 1000 \) USD, \( i = 3 \)%, \( n = 10 \) years
    • Steps:
      • Convert rate: \( i = 3\% = 0.03 \)
      • Future Value: \( FV = PV \times (1 + i)^n = 1000 \times (1 + 0.03)^{10} = 1000 \times 1.343916 = 1343.92 \) USD
    • Result: \( FV = 1343.92 \) USD
  • Example 2: Present Value:
    • Inputs: \( FV = 1000 \) USD, \( i = 2 \)%, \( n = 5 \) years
    • Steps:
      • Convert rate: \( i = 2\% = 0.02 \)
      • Present Value: \( PV = FV \div (1 + i)^n = 1000 \div (1 + 0.02)^5 = 1000 \div 1.104081 = 905.73 \) USD
    • Result: \( PV = 905.73 \) USD

Understand the impact of inflation with this interactive calculator. Share or embed it on your site!