📖 Overview
Use this calculator to plan future cash needs under inflation pressure.
⚙️ How It Works
This projects future purchasing cost by compounding current cost with annual inflation across time.
The Formula
Future Cost = Current Cost × (1 + Inflation Rate ÷ 100)ⁿ
| Future Cost | What the same purchase will cost in the future |
| Current Cost | Today's price or value |
| Inflation Rate | Expected annual inflation as a percentage |
| n | Number of years |
💡At 3% annual inflation, prices double in ~24 years. This matters for retirement planning — a $50,000/year lifestyle today may require $90,000+ in 20 years.
Quick Reference
| Current Cost | 2% / 10yr | 3% / 10yr | 4% / 20yr | 5% / 20yr |
|---|---|---|---|---|
| $10,000 | $12,190 | $13,440 | $21,910 | $26,530 |
| $50,000 | $60,950 | $67,196 | $109,556 | $132,665 |
| $100,000 | $121,899 | $134,392 | $219,112 | $265,330 |
Practical Tips
💡 Use realistic long-term inflation assumptions.
💡 Run low, base, and high inflation scenarios.
Frequently Asked Questions
❓ Why does inflation matter so much long term?
Compounding price growth can significantly change required future cash.
❓ Is CPI the only reference?
No, category-specific inflation may differ from headline CPI.