Inflation Calculator
What today's money will cost in future, what past money is worth today, or the inflation rate implied by two prices — with purchasing-power loss, doubling time and a real-return comparison for any country's rate.
| Cumulative change | — |
|---|---|
| Purchasing power of the original amount | — |
| Prices double every | — |
| Against your growth rate | — |
| At other rates | — |
Year by year
In short
Future cost = today's amount × (1 + inflation)^years; 10,000 at 3% becomes 13,439 in ten years, and 10,000 kept in cash buys only what 7,441 buys today. Prices double every 72 ÷ rate years — about 24 years at 3%, 7 at 10%. Real return = (1 + nominal) ÷ (1 + inflation) − 1.
Who this is for: Savers, planners and anyone pricing a future cost or a past amount in today's money.
How inflation compounds
- Future cost = today's amount × (1 + rate)^years. 3% a year does not sound much, but it is 34% over ten years and 81% over twenty — prices double roughly every 24 years at 3%, every 7 at 10%.
- Purchasing power is the mirror image: money kept in cash at 0% loses the same share.
- Real return = (1 + nominal) ÷ (1 + inflation) − 1, not simply nominal − inflation; at high inflation the difference matters.
- Official averages differ by country and period — the presets are long-run figures; use the rate for the years and goods that matter to you (housing and education usually run above the headline index).
- For a pay rise to keep you level it must match inflation; the rate mode tells you what inflation two prices imply.
See also: Compound Interest & Savings Growth Calculator, Retirement Savings Calculator.
Assumptions
- Forward: amount × (1 + rate)^years; backward: amount ÷ (1 + rate)^years; rate mode: (later ÷ earlier)^(1 ÷ years) − 1.
- Doubling time = ln 2 ÷ ln(1 + rate); real return = (1 + growth) ÷ (1 + inflation) − 1.
- Uses the rate you enter, not an official index.
Worked example
In ten years the same goods cost about 13,439 (+34.4%); 10,000 kept in cash will buy only what 7,441 buys today. Prices double every 23.4 years at 3%. Savings at 4% grow to 14,802 nominal — 11,014 in today's money, a real gain of just 0.97% a year. At 10% (Pakistan-style inflation) the same basket would cost 25,937.
Frequently asked questions
What will 100,000 be worth in 20 years?
At 3% inflation it buys what 55,368 buys today; at 5%, 37,689. The future-cost view is the same arithmetic the other way: 180,611 at 3%.
How do I calculate inflation between two years?
Use rate mode: (later price ÷ earlier price)^(1 ÷ years) − 1 gives the average annual rate.
Is 3% a safe assumption?
It is the long-run US average; central banks target about 2%, and emerging markets run far higher — Pakistan has averaged close to 10% over the last two decades.
Does the calculator use real CPI data?
No — it applies the rate you choose, so it works for any country and any period; look up the official index for exact historical conversions.
What is the rule of 72 for inflation?
Divide 72 by the inflation rate to get the years for prices to double: 24 years at 3%, 7.2 at 10%.
How much has inflation been in Pakistan?
Close to 10% a year on average over the last two decades, with spikes above 20% in 2023; use 8–10% for long-run planning in PKR.
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