Inflation & Purchasing Power Calculator
Compute future costs of goods, calculate purchasing power erosion, evaluate cumulative inflation, and adjust salaries for cost of living
Price of item or cash value today
Expected annual inflation percentage
Number of years into future
Projected Future Cost (FV)
$2,191.12
Total Price Increase: +119.1%
Present Value: $1,000.00 • Cumulative Inflation Multiplier: 2.19×
Purchasing Power of Future Money
$456.38
What $1,000 in future will buy in today’s terms
Total Price Increase Percentage
+119.11%
Overall cost expansion
Purchasing Power Loss
54.37%
Value erosion of initial capital
Rule of 72 Price Doubling
18.0 Years
Time required for prices to double
Calculate Historical Inflation Rate Between Two Prices
Price in past year
Price today
Annualized Inflation Rate (CAGR)
3.75% per annum
Total Cumulative Inflation: +150.0%
Formula: (FV / PV)^(1 / t) – 1 = ($250 / $100)^(1 / 25) – 1
Calculated Annual Inflation
3.75%
Compound annual growth rate
Total Cumulative Inflation
150.00%
Total price multiplier
Price Multiplier Ratio
2.50×
Present Value ÷ Past Value
Purchasing Power Retention
40.00%
Value of past dollar today
Determine Required Salary to Maintain Standard of Living
Current income level
Required Future Salary for Equal Purchasing Power
$105,774.90 / year
Required Nominal Raise: +$30,774.90 (+41.0%)
To maintain identical standard of living over 10 years at 3.5% inflation
Required Future Salary
$105,774.90
Target annual income
Required Monthly Salary
$8,814.58 / mo
Monthly take-home target
Total Nominal Increase
+$30,774.90
Absolute salary boost needed
Real Purchasing Power
$75,000.00
Constant value in today’s terms