What today's dollars will buy tomorrow, and what tomorrow's bills will cost — the quiet tax on cash.
US CPI has averaged ~2.6%/yr over the last 30 years, ~3.8% over the last 5.
A savings yield or conservative portfolio return, to show what beating (or just matching) inflation looks like.
This inflation calculator translates between today's and tomorrow's dollars, showing how much purchasing power a sum loses over time and what a given expense will cost in the future. It makes the hidden tax on cash easy to see.
Future buying power is today's amount divided by one plus the inflation rate, compounded over the years; future cost is the same amount multiplied by that factor. The invested comparison grows your money at a nominal return and then discounts it back by inflation to show its real value — making clear whether an investment beats, matches, or trails the erosion of cash.
Inflation raises prices, so the same dollar buys less each year. Cash that earns less than the inflation rate quietly loses real value.
It is what your money can actually buy. $100 today and $100 in twenty years are the same number but very different amounts of goods and services.
Holding assets that tend to outpace inflation — stocks, real estate, or inflation-protected bonds — helps preserve purchasing power better than idle cash.
Inflation is a silent, near-certain erosion of cash's buying power, while market losses are visible and recover over time. Cash feels safe but quietly loses real value every year it sits.
US CPI has averaged roughly 2.5–3% over the long run, though some years run much higher. Categories like housing, healthcare, and tuition have historically risen faster than the headline rate.
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