Future Inflation and Purchasing Power
Why the same dollars may buy less later — and how to read a simple future inflation projection.
Published
Purchasing power is what a dollar can buy. Future inflation means prices may rise, so cash sitting still buys fewer goods over time.
Two useful views
- Erosion — today’s amount in future purchasing power (what it still “feels like” later)
- Future cost — dollars needed later for the same basket of goods
The future inflation calculator projects both from amount today, an annual inflation rate, and years ahead. A steady ~2–3% rate is a common long-run planning assumption, not a forecast.
Try it
Enter an amount that matters to you, 10–20 years ahead, and 3% annual inflation. Expand the breakdown for future cost of the same basket, purchasing power lost, and cumulative inflation. Pair with the savings & investment growth calculator to compare cash sitting still vs growth assumptions — both are simplified models only.