How it works
Inflation silently shrinks what money buys. At 3% yearly inflation, prices double roughly every 24 years — meaning uninvested cash halves in purchasing power.
Future value = Present ÷ (1 + inflation)years
This is why "safe" cash under the mattress is actually losing value every year.
Frequently asked questions
What is normal inflation?
The US Federal Reserve targets 2%. The long-run average is ~3%. 2021–2023 spiked above 8%.
How do I beat inflation?
Investments historically return above inflation: stocks ~10%, bonds ~5%, vs 3% inflation. Cash at 0% always loses.
What is hyperinflation?
Extremely rapid inflation (50%+/month) that destroys currency value — rare in developed economies.
Disclaimer: This calculator provides estimates for educational purposes only and is not financial, tax, or legal advice. Consult a qualified professional before making financial decisions.