Planning concepts
What inflation does to a price, and to a paycheck
An inflation impact calculator: clients enter an amount, an inflation rate and years to see the future cost, its value in today's dollars and cumulative inflation.
Included on every plan, even the free Practitioner plan. No card needed.
How does inflation affect future costs?
Prices compound at the inflation rate: future cost = today's cost × (1 + inflation)^years. At 3%, prices roughly double in about 24 years, so $60,000 of spending today needs about $122,000 then. Money held without growth loses purchasing power at the same rate.
When inflation is in the news
Price increases at the grocery store or in the news make clients wonder what retirement will cost, or what their savings will be worth.
What the client types into a search box
“how much will things cost in 20 years”
How a client works through it
Enter an amount
A cost or a sum of money today.
Enter inflation
Annual rate.
Enter years
How far ahead.
See the effect
Future cost, today's-dollar value and cumulative inflation.
What lands in your inbox
When a client asks your firm to review the result, the request arrives as a contact record with their inputs and results attached, by email and, on paid plans, by webhook to your CRM.
Received
The amount, rate and years show what the client is worried about. Long horizons with retirement-sized amounts suggest planning conversations.
Future cost and purchasing power
Future Cost shows what today's amount will cost later. Future Value in Today's Dollars shows what the same amount of money will be worth. Total Increase and Cumulative Inflation summarize the change.
Small rates add up: 3% over 30 years more than doubles prices.
Results shown: Future Cost · Future Value in Today's Dollars · Total Increase · Cumulative Inflation.
At 3% for 24 years
1.03^24 ≈ 2.03, so $60,000 of today's spending would cost about $122,000 in 24 years.
Why inflation education supports planning
Clients underestimate inflation over long horizons. Showing it plainly supports the case for investing and for realistic retirement targets.
It's a strong content piece for newsletters and blog posts.
Follow-ups this request opens
- Adjust retirement targets for inflation
- Review cash holdings
- Discuss inflation-protected investments
- Update the financial plan
What this calculator leaves out
- Constant inflation rate.
- Prices vary by category.
- No investment growth.
- Taxes not included.
Platform disclaimer shown under the calculator: Estimates only. Future inflation is unknown; this projects a constant rate. Actual prices vary by category.
Compliance note for firms
Inflation projections are illustrations. Avoid using them to promote specific inflation-hedge products without proper suitability analysis.
Not legal advice. See our disclaimer and the guide to compliance for client calculators.
Terms your client sees in the calculator
These definitions appear in the calculator's collapsible Definitions block, so clients don't have to call to ask what a label means.
- Inflation
- The general rise in prices over time, which means each dollar buys less. It is usually quoted as an annual percentage. This calculator applies one constant rate every year, compounding it, while real inflation varies from year to year and differs widely between categories such as housing, health care and electronics.
- Purchasing power
- How much a sum of money can actually buy. When prices rise and the sum stays the same, its purchasing power falls. The “future value in today’s dollars” result shows what your current amount would be worth in real terms after the years you enter — for example, $50,000 at 3% for 20 years buys what about $27,700 buys today.
- Future cost
- What something that costs the current amount today would cost after the years you enter, if prices rise at your inflation rate: current amount × (1 + rate) raised to the number of years. At 3% a year, a $50,000 cost grows to about $90,300 in 20 years. Useful for setting savings targets in future dollars.
- Annual inflation rate
- The average yearly price increase you assume. As this calculator’s tooltip notes, U.S. CPI inflation has averaged roughly 3% over the long run, though individual years have been far higher and lower. Small changes matter over long horizons: 2% versus 4% over 20 years is the difference between prices rising about 49% or about 119%.
- Consumer Price Index (CPI)
- A measure published monthly by the U.S. Bureau of Labor Statistics that tracks the average change in prices paid by urban consumers for a basket of goods and services. The percentage change in CPI over a year is the most commonly cited inflation rate, and many benefits and tax figures are indexed to it.
- Cumulative inflation
- The total percentage increase in prices over the whole period, not per year. Because each year’s increase builds on the last, it exceeds the annual rate times the number of years: 3% for 20 years is about 81% cumulative, not 60%. This calculator reports it alongside the total dollar increase.
In our glossary: Real return
Inflation Impact calculator: questions from firms and clients
What inflation rate should I use?
Test several; long-run averages around 2% to 3% are common planning assumptions.
Do all prices rise at the same rate?
No; healthcare and education often rise faster.
What's cumulative inflation?
The total percentage increase over the period.
How does this affect retirement?
Retirement spending must be inflated to the future; see the retirement planner.
Does cash keep up?
Often not after tax; see the savings, taxes and inflation calculator.
Is the rule of 72 related?
Yes, 72 ÷ inflation estimates years for prices to double.
Can I see past inflation?
This tool projects forward only.
Which plan includes it?
Every plan, including the free Practitioner plan, which runs up to 5 calculators at once alongside the other household planning tools. Firm (up to 50) and Network (no cap) add webhooks and white-label. See pricing.
No question matches that filter. Clear it to see them all, search the whole site, or ask us directly; we reply within one business day.
Clients who ask this usually ask next
Savings, Taxes and Inflation
is my savings account keeping up with inflation
Rule of 72
how long does it take to double my money
Retirement Planner
am I on track to retire at 65
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Answer the March question before the client calls
Embed the Inflation Impact calculator on your firm's site in an afternoon and receive requests with the numbers already filled in.
Firm and Network plans include a 14-day trial. Cancel before it ends and you pay nothing.