Compounding Inflation

This inflation calculator compounds an annual rate over the period: future value = amount × (1 + r)ⁿ. Because inflation compounds, a decade at 3% erodes 34% of buying power — noticeably more than the naive 30% sum.

Reading Both Directions

The forward number shows what tomorrow's money buys; the reverse shows that $13,439 ten years from now is worth only $10,000 today. Retirement and savings goals need the second view — target amounts must inflate, not stay flat.

Planning Around It

Long-term CPI averages 2–3%, so use 3% for conservative planning. Investments only grow real wealth when their return exceeds inflation — the difference is your real, after-inflation gain.