{
  "slug": "inflation-impact",
  "title": "Inflation Impact Calculator",
  "heading": "Inflation Purchasing Power Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/inflation-impact",
  "summary": "What today's money is worth in the future.",
  "description": "Inflation quietly shrinks cash. At 3%, a dollar loses about a quarter of its buying power in ten years — which is why sitting in cash is not neutral.",
  "formula": "Future value of purchasing power = amount ÷ (1 + i)^years",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=inflation-impact",
  "inputs": [
    {
      "id": "amount",
      "label": "Amount today",
      "kind": "number",
      "hint": null,
      "default": 100000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "infl",
      "label": "Inflation rate",
      "kind": "number",
      "hint": null,
      "default": 3,
      "unit": "%",
      "min": 0,
      "max": 25
    },
    {
      "id": "years",
      "label": "Years",
      "kind": "number",
      "hint": null,
      "default": 20,
      "unit": null,
      "min": 1,
      "max": 60
    }
  ],
  "outputs": [
    {
      "id": "real",
      "label": "Buying power in today's dollars",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "needed",
      "label": "Amount needed to match today",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "lost",
      "label": "Purchasing power lost",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "pctLost",
      "label": "Percent lost",
      "format": "decimal",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Amount today: 100000 $",
      "Inflation rate: 3 %",
      "Years: 20"
    ],
    "outputs": [
      "Buying power in today's dollars: $55,368",
      "Amount needed to match today: $180,611",
      "Purchasing power lost: $44,632",
      "Percent lost: 44.6"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter amount today ($).",
      "Enter inflation rate (%).",
      "Enter years.",
      "Read your buying power in today's dollars on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "amount": 60000,
        "infl": 1.7999999999999998,
        "years": 12
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "amount": 100000,
        "infl": 3,
        "years": 20
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "amount": 160000,
        "infl": 4.800000000000001,
        "years": 32
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "How does the inflation purchasing power calculator work?",
      "a": "Inflation quietly shrinks cash. At 3%, a dollar loses about a quarter of its buying power in ten years — which is why sitting in cash is not neutral. The underlying maths is: Future value of purchasing power = amount ÷ (1 + i)^years"
    },
    {
      "q": "What do I need to enter?",
      "a": "3 values: amount today, inflation rate, and years. Each field starts with a sensible default, so you can change one number at a time and watch the result move."
    },
    {
      "q": "What does the buying power in today's dollars result mean?",
      "a": "It is returned as a money amount in US dollars and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds."
    },
    {
      "q": "Is this calculator free, and do I need an account?",
      "a": "Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser."
    },
    {
      "q": "How accurate is the result?",
      "a": "It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them."
    },
    {
      "q": "Who is this tool for?",
      "a": "It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs."
    }
  ],
  "related": [],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Inflation Impact Calculator (https://www.revenuelab.fyi/toolbox/inflation-impact)"
}