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Inflation Erosion of Purchasing Power Calculator

PV = FV/(1+π)ⁿ — real value of money over time.

Calculates how inflation erodes purchasing power: real value after n years = PV/(1+π)ⁿ. Also shows how much more you need in future to buy today's $1 of goods.

Nadia Almasri By Nadia Almasri
Published Last reviewed 1 min read

Inputs

$
%
yr

Results

Enter values and click Calculate to see results.
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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

Real value = PV / (1+π)ⁿ; future cost = PV × (1+π)ⁿ

In depth

Calculates how inflation erodes purchasing power: real value after n years = PV/(1+π)ⁿ. Also shows how much more you need in future to buy today's $1 of goods.