Inflation / Purchasing Power Calculator
About Inflation / Purchasing Power Calculator
The purchasing power calculator discounts today's value by an assumed annual inflation rate over a planning horizon.
How to Use
The purchasing power calculator discounts today's value by an assumed annual inflation rate over a planning horizon. Enter the Current value, Annual inflation rate, and Years values and review the Future purchasing power, Lost purchasing power, and Retained value outputs after you calculate.
- Open the calculator : Use Inflation / Purchasing Power Calculator from the Business category.
- Check the inputs : Review the required values and any optional settings.
- Read the formula : Use the formula and notes below to understand how the result is produced.
Common Questions
What formula does the Inflation/Purchasing Power Calculator use?
Future purchasing power = current value / (1 + inflation rate) ^ years.
Inputs
- Current value
- Annual inflation rate
- Years
Outputs
- Future purchasing power
- Lost purchasing power
- Retained value
Formula
Future purchasing power = current value / (1 + inflation rate) ^ years.