How to use this calculator
Enter an amount, the expected annual inflation rate, and a number of years. The tool shows what that money will actually be worth in the future (its purchasing power), how much the same basket of goods will cost later, and how much value is lost to inflation.
How inflation erodes value
Future purchasing power is calculated as PV = A ÷ (1 + rate)^years. At 4% inflation, $10,000 today has the buying power of only about $6,750 in 10 years. That is why simply holding cash, rather than investing it, quietly loses value every year.
Beating inflation
To preserve or grow wealth, your investments need to earn more than the inflation rate after tax. Assets like equities, index funds, and real estate have historically outpaced inflation over long periods, though they carry more short-term risk than cash savings.