MTS Institute / Inflation calculator
Inflation calculator
See what something will cost in future and your real return after inflation.
How it works
Future cost = cost today × (1 + inflation) to the power years. Real return = (1 + your return) ÷ (1 + inflation) minus 1.
Example: at 6 percent inflation, 1,00,000 today costs about 1,79,085 in 10 years. A 10 percent return is only about 3.8 percent in real terms.
Questions
Why does inflation matter to investors?
Inflation shrinks what money can buy. Only the return above inflation grows your real wealth.
What inflation rate should I use?
Use the long run average for your country and your own costs. Education and health costs often rise faster than general inflation.
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