At 3% inflation, $100 today buys only $55.37 worth of today's goods in 20 years; the same basket will then cost $180.61.
- 2%
- 2.5%
- 3%
- 4%
- 5%
- 7%
| Years | 2% | 2.5% | 3% | 4% | 5% | 7% |
|---|---|---|---|---|---|---|
| 0 | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 |
| 1 | $98.04 | $97.56 | $97.09 | $96.15 | $95.24 | $93.46 |
| 2 | $96.12 | $95.18 | $94.26 | $92.46 | $90.70 | $87.34 |
| 3 | $94.23 | $92.86 | $91.51 | $88.90 | $86.38 | $81.63 |
| 4 | $92.38 | $90.60 | $88.85 | $85.48 | $82.27 | $76.29 |
| 5 | $90.57 | $88.39 | $86.26 | $82.19 | $78.35 | $71.30 |
| 10 | $82.03 | $78.12 | $74.41 | $67.56 | $61.39 | $50.83 |
| 15 | $74.30 | $69.05 | $64.19 | $55.53 | $48.10 | $36.24 |
| 20 | $67.30 | $61.03 | $55.37 | $45.64 | $37.69 | $25.84 |
| 25 | $60.95 | $53.94 | $47.76 | $37.51 | $29.53 | $18.42 |
| 30 | $55.21 | $47.67 | $41.20 | $30.83 | $23.14 | $13.14 |
| 40 | $45.29 | $37.24 | $30.66 | $20.83 | $14.20 | $6.68 |
How it is computed
Purchasing power = amount ÷ (1 + inflation)^years, with a constant annual inflation rate. The future cost of the same basket is amount × (1 + inflation)^years.
FAQ
Which inflation rate should I use?+
Central banks in Canada and the US target 2% a year; long-run averages have run closer to 3%. Try both to see the range.
How do I protect savings from inflation?+
Money has to earn more than inflation to keep its value: compare your after-tax return with the inflation rate in the real return calculator.