Future value of money given inflation.
These calculators use standard financial formulas (amortization, compound interest, marginal tax brackets) to estimate results based on the numbers you enter. They don't account for your full financial picture, and results shouldn't be treated as financial, tax, or investment advice. For decisions with real money on the line, check the numbers with a lender, accountant, or financial advisor who can see your complete situation.
Inflation erodes purchasing power over time. Shows nominal future value (dollars needed to match today's power) and purchasing power of a future amount.
US long-run average ~3%/year; individual years range from near 0% to over 8%.
Inflation compounds just like interest does, which is why even a 'mild' 3% annual rate cuts purchasing power by more than half over a 25-year span — worth keeping in mind for any long-term financial plan.
$1,000 today at 3% inflation over 20 years: nominal future value $1,806.11, or purchasing power of $553.68 in today's terms.
A $1M nominal retirement at 3% over 30 years is ~$412k in today's power. Plan long-term goals in real (inflation-adjusted) dollars.
US Bureau of Labor Statistics tracks CPI-U — a weighted basket of goods and services. Personal experience varies with spending.
3% is the long-run historical average, but some planners use 2.5-3.5% depending on how conservative they want to be — try both ends of that range to see how sensitive your plan is.