The same money. A different basket.
See how an illustrative inflation rate changes prices over time—and what an unchanged amount of money can buy.
What will the same money buy?
Change the assumptions to see compounding at work. Your entries stay on this page.
Something that costs $100.00 now would cost $115.93 after 5 years at 3% annual inflation.
YOUR MONEY'S PURCHASING POWER$86.26 in today's dollars
Keeping $100.00 unchanged would buy what $86.26 buys today.
Slower inflation still means higher prices.
At a positive inflation rate, prices keep rising. A drop from 4% to 2% means they rise more slowly. Prices fall in this example only when the inflation rate is negative.
Assumptions and formula
Future cost = amount × (1 + annual inflation ÷ 100)years. Purchasing power = amount ÷ that same growth factor. The rate stays constant; there is no interest earned or change in what you buy. Fractional years use the equivalent compounded factor.