| Horizon | 2% inflation | 3% inflation | 4% inflation |
|---|
Purchasing power of your amount at each rate and horizon.
Purchasing power: how much today’s dollar buys in the future. Formula: amount ÷ (1 + rate)years.
Required future amount: how much you’d need in N years to match today’s spending power. Formula: amount × (1 + rate)years.
At 3% inflation over 20 years, $100,000 has the buying power of about $55,000 in today’s dollars — and you’d need $180,000 then to buy what $100,000 buys today.
Educational purposes only. This calculator illustrates mathematical concepts related to long-term investing and is not financial advice. Past market returns do not guarantee future results. Portfolios can lose value. The formulas assume constant returns and do not account for taxes, fees, inflation, or sequence-of-returns risk. Consult a qualified financial professional before making investment decisions.