View Year-by-Year Inflation Projection
| Year | Equivalent Future Cost | Today's Cash Purchasing Power | Price Change vs. Today |
|---|
Future Cost and Purchasing Power Are Different
If something costs $1,000 today and prices rise 3% every year for 10 years, its modeled future equivalent cost is about $1,343.92. The additional $343.92 is the increase in nominal cost, not “$343.92 of purchasing power loss.”
To measure the purchasing power of an unchanged $1,000 cash balance in today's dollars, the direction is reversed: $1,000 ÷ 1.0310 ≈ $744.09. In this example the cash retains about 74.4% of its original purchasing power.
Real purchasing power of unchanged cash: Amount ÷ (1 + inflation rate)years
What CPI Measures
The Consumer Price Index for All Urban Consumers (CPI-U) is a broad measure of changes over time in prices paid by urban consumers for a market basket of consumer goods and services. It is an average measure, so your own cost changes can be very different depending on what you buy and where you live.
As of the latest available BLS release used on this page, CPI-U increased 3.4% over the 12 months ending August 2026. Individual categories varied substantially: for example, food rose 2.7% over that period while energy rose 16.3%. That is one reason this calculator lets you choose your own planning assumption rather than claiming one inflation rate fits every household.
Official source: U.S. Bureau of Labor Statistics, Consumer Price Index and August 2026 CPI release.
Historical CPI vs. Future Inflation Assumptions
A historical inflation calculator normally compares published CPI index levels between past dates. A future projection is different: no one knows the future CPI path, so it requires an assumed rate. This page focuses on transparent future scenarios and clearly labels the rate as an assumption.
Do not interpret the latest 12-month CPI reading as a forecast for the next 5, 10 or 30 years. Use multiple assumptions when planning over long periods; the optional comparison rate above is provided for that purpose.
Inflation Calculator FAQ
How much will $1,000 cost in 10 years with 3% inflation?
With a constant 3% annual inflation assumption, an item costing $1,000 today would have an equivalent future cost of about $1,343.92 after 10 years.
What happens to $1,000 cash with 3% inflation?
If the cash balance stays at $1,000 while prices rise 3% annually for 10 years, its modeled purchasing power is about $744.09 in today's dollars.
Is the current inflation rate a good forecast?
Not necessarily. A recent 12-month CPI change describes what happened over that period. Future inflation can be higher or lower, so long-term projections should be treated as scenarios rather than predictions.
Can inflation be negative?
Yes. A broad decline in prices is deflation. This calculator accepts negative rates above -100% so you can model that scenario mathematically.
Why doesn't my personal inflation match CPI?
CPI represents price change for a broad consumer basket. Your spending mix, housing situation, location and the specific products and services you buy can produce a different personal experience.