Understand how inflation erodes purchasing power over time. Calculate future or historical values in US Dollar.
Purchasing Power Loss
At 3% annual inflation, your $100,000 will only buy what $55,368 buys today in 20 years. That's a 44.6% loss in purchasing power.
Today's Value
$100,000
Worth in 20 Years
$55,368
In today's dollars
Value Lost
$44,632
-44.6%
| Year | Nominal Value | Purchasing Power | Value Lost | % Lost |
|---|---|---|---|---|
| 0 | $100,000 | $100,000 | -$0 | -0.0% |
| 2 | $100,000 | $94,260 | -$5,740 | -5.7% |
| 4 | $100,000 | $88,849 | -$11,151 | -11.2% |
| 6 | $100,000 | $83,748 | -$16,252 | -16.3% |
| 8 | $100,000 | $78,941 | -$21,059 | -21.1% |
| 10 | $100,000 | $74,409 | -$25,591 | -25.6% |
| 12 | $100,000 | $70,138 | -$29,862 | -29.9% |
| 14 | $100,000 | $66,112 | -$33,888 | -33.9% |
| 16 | $100,000 | $62,317 | -$37,683 | -37.7% |
| 18 | $100,000 | $58,739 | -$41,261 | -41.3% |
| 20 | $100,000 | $55,368 | -$44,632 | -44.6% |
Inflation is the rate at which the general level of prices for goods and services rises, causing purchasing power to fall. Central banks typically target 2% annual inflation.
Purchasing power refers to how much your money can buy. As inflation rises, each unit of currency buys fewer goods and services, reducing your real wealth.
To protect against inflation, consider investments that historically outpace inflation like stocks, real estate, I-bonds, or TIPS (Treasury Inflation-Protected Securities).