How to adjust a future price for inflation
Start with today’s price to estimate what the same purchase could cost in the future under a constant annual inflation assumption.
- Enter the current price in dollars.
- Enter your assumed annual inflation rate as a percentage: enter 3 for 3%.
- Enter the number of years ahead. The projected future price updates as you change an input.
- Use “Save as scenario A” to compare the result with a different rate or time period.
Formula and limits
Future price = current price × (1 + annual inflation ÷ 100)years. The same assumed rate compounds each year: each year’s increase applies to the previous year’s price, rather than only to the original amount.
The entered inflation rate is an assumption, not a forecast. Actual inflation changes over time, and individual prices may rise faster or slower than an overall inflation measure. This calculator does not use historical CPI data or look up inflation between calendar dates. Its default rate and the examples below are illustrations, not predictions.
Worked example: $100 over 10 years at 3%
With the calculator’s starting values, a purchase that costs $100 today would have an estimated future price of $134.39 after 10 years if inflation stayed at 3% per year.
| Input | Example value |
|---|---|
| Current price ($) | 100 |
| Assumed annual inflation (%) | 3 |
| Years | 10 |
$100 × 1.0310 ≈ $134.39
The estimated increase is $34.39. It exceeds $30 because the annual increases compound.
Second worked example: $250 over 5 years at 2.5%
Suppose an item costs $250 today and you want to budget for it five years from now. Enter 250 as the current price, 2.5 as the assumed annual inflation percentage, and 5 as the number of years.
$250 × 1.0255 ≈ $282.85
Under that assumption, you would budget about $282.85 for the same purchase, an increase of $32.85. Change the rate to compare other possible outcomes.
Purchasing power versus future nominal price
The future nominal price is the dollar amount you would pay later. It is the result this calculator displays. Purchasing power describes how much those dollars can buy. When prices rise, an unchanged dollar balance buys less.
In the first example, $134.39 in 10 years would buy approximately what $100 buys today. If you instead kept a fixed $100 balance with no earnings, its purchasing power after 10 years at 3% inflation would be about $74.41 in today’s dollars.
To express a future dollar amount in today’s purchasing power, divide it by (1 + annual inflation ÷ 100)years. That reverse calculation explains the distinction; the calculator above estimates a future price from a current price.
Plan savings alongside future costs
Use the compound growth calculator to explore a savings balance with an assumed return and monthly contributions. Use the savings goal calculator to estimate a monthly contribution toward your future price target. Those tools have their own assumptions; the savings goal calculator does not include interest, and neither automatically adjusts its result for inflation.
Compare inflation assumptions
For an item costing $100 today, the table shows possible prices after 10 years. These rates illustrate different scenarios; none is a forecast or a recommended rate.
| Assumed annual rate | Future price after 10 years |
|---|---|
| 2% | $121.90 |
| 3% | $134.39 |
| 5% | $162.89 |
To compare your own scenarios, enter your price and years, save one result as scenario A, then change only the inflation assumption. The difference shows how sensitive your budget is to that assumption.
Future-price estimate or historical inflation adjustment?
This tool answers “What might today's price become if my assumed rate stays constant?” It does not answer “What was a dollar in 1990 worth in 2020?” For a historical U.S. dollar comparison, use the BLS CPI Inflation Calculator, which uses historical CPI data. Historical CPI and a future-rate assumption answer different questions.
What happens with zero or negative inflation?
At 0%, the projected price stays the same. A negative rate above −100% represents an assumed annual price decrease. For example, $100 at −2% for 5 years becomes about $90.39. A rate of −100% or lower is not accepted.
Does this include savings interest?
No. This calculation changes a price, not a savings balance. Use the compound growth tool for assumed investment returns, and keep the future-price target separate from those uncertain returns.
U.S. inflation and CPI background
The U.S. Bureau of Labor Statistics publishes the Consumer Price Index (CPI), which measures average price changes for a representative basket of consumer goods and services. Read the BLS Consumer Price Index questions and answers for background on U.S. inflation and why your own spending may differ from the average. This is a background source; its data is not used in this calculator.