Finvra Logo
Finvra

Inflation Calculator

Understand the silent tax on your savings. Visualize how the rising cost of living affects your future purchasing power.

USA ($) Mode
$
1K1M
%
0.1%8%

Global Avg: ~5-6%

Years
1Y30Y

Future Value Needed

$17,908
Current Value$10,000
Inflation Impact$7,908

Why $100 Today Won't Be Worth $100 Tomorrow

Inflation is the rate at which the general level of prices for goods and services rises. As inflation rises, every unit of currency buys a smaller percentage of a good or service.

Many people believe that keeping money in a savings account keeps it safe. However, due to inflation, the Real Value of that cash decreases over time. If a loaf of bread costs $2.00 today and inflation is 5%, that same loaf will cost $2.10 next year.

The Inflation Formula

FV = PV × (1 + i)n
  • FV = Future Value (Cost in future)
  • PV = Present Value (Cost today)
  • i = Inflation Rate (decimal)
  • n = Number of Years

The "Silent Tax"

Inflation reduces your wealth without the government taking money from your account. You have the same dollars, but they buy less.

Retirement Impact

A monthly expense of $2,000 today might rise to $5,000 in 20 years. Plan your corpus accordingly.

Investment Strategy

Use this tool to determine the "Hurdle Rate"—the minimum return your investments must generate just to break even.

Tools to Beat Inflation

Compound Interest
Growth Visualizer
SIP Calculator
Invest Regularly
Retirement
Plan Your Future
FD Calculator
Safe Returns

Frequently Asked Questions

What is a 'safe' inflation rate?
Central banks (like the Fed or ECB) typically target an annual inflation rate of around 2%. This is considered healthy for economic growth. Anything significantly higher erodes savings too quickly, while deflation (falling prices) can stall the economy.
How does inflation affect my savings?
If your bank gives you 3% interest but inflation is 5%, you are effectively losing 2% of your purchasing power every year. This is called a 'Negative Real Return'.
What is the Rule of 72?
The Rule of 72 is a shortcut to estimate how long it takes for prices to double. Divide 72 by the inflation rate. For example, at 6% inflation, the cost of living doubles in just 12 years (72 ÷ 6 = 12).
How can I protect my money from inflation?
To beat inflation, you must invest in assets that historically appreciate faster than the inflation rate, such as Stocks (Equities), Real Estate, or Gold, rather than keeping all cash in a low-yield savings account.

Disclaimer: This Inflation Calculator provides estimates based on a constant inflation rate. Real-world inflation fluctuates significantly based on economic conditions, government policies, and supply chain factors.