How to use Purchasing Power Calculator
- Enter an amount in one currency.
- Set your annual inflation assumption and whole years.
- Compare modeled future cost with the purchasing power of unchanged money.
Example: Purchasing Power Calculator
Purchasing Power Calculator: An item costing 1000.00 today would cost 1159.27 after 5 years at the entered rate.
Options
- Inflation assumption
- Enter one constant annual percentage for every modeled year. This is your scenario, not a fetched inflation series.
- Elapsed years
- Use whole years. Compounding applies once for each entered year and does not model a partial-year date range.
Supported inputs and limits
Where your input is processed
This tool processes your input in this browser. Your text and files are not uploaded to UseFreeTools. Check this tool's limits for anything it may save on your device.
Keep nominal amounts and buying power separate
Future equivalent cost shows the amount needed under the entered inflation assumption. Present purchasing power shows what an unchanged nominal amount represents after the same elapsed time. Different spending baskets can experience different price changes; the page does not choose an inflation measure for a household.
Questions about Purchasing Power Calculator
Does this use an official inflation series?
No. You enter the rate. The same assumption is applied every year.
Why are there two amounts?
Future cost multiplies by the compounded inflation factor. Purchasing power divides unchanged money by that same factor.
Can I enter deflation?
Yes, using a negative rate greater than -100%. The model then lowers future equivalent cost and raises purchasing power.