Estimate how a constant inflation assumption changes an amount across a number of years.
Inflation Calculator
Forward Flat Rate Inflation Calculator
Results
Table of Contents
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What is Inflation Calculator?
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How to Use This Calculator
- Enter or select Inflation Amount, Inflation rate, Years.
- Check the unit beside each measurement. For a percentage or rate, use the scale and time period stated in the form.
- Choose Calculate, then compare the output with the formula and example below. If you change a value or option, calculate again to update the result.
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Formula Used
Future equivalent = current amount × (1+inflation rate)ʸᵉᵃʳˢ
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Variables Explained
| Input | What it means |
|---|---|
| Inflation Amount | Use the measured or stated value for this item, with the unit or category shown beside the field. |
| Inflation rate | The stated rate or percentage, entered using the scale and time period shown in the form. |
| Years | Use the measured or stated value for this item, with the unit or category shown beside the field. |
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Worked Example
At 3% inflation, 100 today corresponds to about 115.93 after 5 years.
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Why Use This Calculator?
Compare the result with the underlying statement, budget or proposed transaction. It is most useful when every amount uses the same reporting period and the same accounting definition.
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Common Mistakes
- A constant assumed rate is a scenario; it is not a prediction of actual prices.
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Frequently Asked Questions
Should I use monthly or annual figures?
Use one consistent period for every amount and rate in the relationship. If a form specifies an annual rate or a monthly amount, follow that label rather than mixing time periods.
Does the result include fees and tax?
Only the costs and taxes represented by the inputs and formula are included. A real transaction can include other charges, so compare the estimate with the underlying agreement or statement.
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Sources & References
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