Dated assumptions · transparent formulas
Future Value of Money Inflation Calculator
See how investment growth and inflation change the value of money over time. Compare a future dollar balance with its purchasing power in today’s dollars.
Educational calculator. Inputs stay in your browser. Historical ranges are not forecasts or investment advice.
Inputs
Estimate comparison
| Assumption | Rate | Nominal FV | Real FV |
|---|---|---|---|
| Lower growth estimateEditable nominal return | 5.00% | $27,126.40 | $15,019.23 |
| Middle growth estimateEditable nominal return | 7.00% | $40,387.39 | $22,361.52 |
| Higher growth estimateEditable nominal return | 9.00% | $60,091.52 | $33,271.22 |
Growth curve and yearly schedule
The same projection engine draws each estimate and feeds the collapsible year-by-year detail.
- Lower growth estimate
- Middle growth estimate
- Higher growth estimate
Show year-by-year detail
| Year | Opening | Deposits | Interest | Ending |
|---|---|---|---|---|
| 1 | $10,000.00 | $0.00 | $722.90 | $10,722.90 |
| 2 | $10,722.90 | $0.00 | $775.16 | $11,498.06 |
| 3 | $11,498.06 | $0.00 | $831.20 | $12,329.26 |
| 4 | $12,329.26 | $0.00 | $891.28 | $13,220.54 |
| 5 | $13,220.54 | $0.00 | $955.71 | $14,176.25 |
| 6 | $14,176.25 | $0.00 | $1,024.80 | $15,201.06 |
| 7 | $15,201.06 | $0.00 | $1,098.89 | $16,299.94 |
| 8 | $16,299.94 | $0.00 | $1,178.32 | $17,478.26 |
| 9 | $17,478.26 | $0.00 | $1,263.51 | $18,741.77 |
| 10 | $18,741.77 | $0.00 | $1,354.84 | $20,096.61 |
| 11 | $20,096.61 | $0.00 | $1,452.79 | $21,549.40 |
| 12 | $21,549.40 | $0.00 | $1,557.81 | $23,107.21 |
| 13 | $23,107.21 | $0.00 | $1,670.42 | $24,777.63 |
| 14 | $24,777.63 | $0.00 | $1,791.18 | $26,568.81 |
| 15 | $26,568.81 | $0.00 | $1,920.66 | $28,489.47 |
| 16 | $28,489.47 | $0.00 | $2,059.51 | $30,548.97 |
| 17 | $30,548.97 | $0.00 | $2,208.39 | $32,757.36 |
| 18 | $32,757.36 | $0.00 | $2,368.03 | $35,125.39 |
| 19 | $35,125.39 | $0.00 | $2,539.22 | $37,664.61 |
| 20 | $37,664.61 | $0.00 | $2,722.78 | $40,387.39 |
Rate assumptions and sources
Lower / Middle / Higher estimates · reviewed 2026-09-12
Scenario pages can initialize editable rates as rounded planning assumptions. The source cards below identify benchmark provenance; they do not imply that a scenario default is a live quote.
- Lower growth estimate
5.00%
Editable scenario input
Illustrative nominal return before inflation adjustment.
- Middle growth estimate
7.00%
Editable scenario input
Illustrative nominal return before inflation adjustment.
- Higher growth estimate
9.00%
Editable scenario input
Illustrative nominal return before inflation adjustment.
- Inflation: 3.00%
- Editable scenario input
Editable 3% annual inflation scenario, not a CPI observation or forecast.
Nominal balance versus real purchasing power
Nominal future value is the number of dollars in the future account. Real future value discounts that balance by the increase in prices to express what it could buy in today’s dollars. This calculator shows both amounts for each editable return assumption.
To model cash that earns no interest, set the rate to 0%. To model money invested at a return, enter that nominal rate separately from inflation. Inflation reduces buying power even if the dollar balance rises.
To estimate how much money will be needed to buy the same goods in the future, multiply today’s cost by (1 + inflation)^years. That future cost is a different question from discounting a future account balance back to today.
Future value with inflation formula
Nominal FV = PV × (1 + r/m)^(m × t) for a lump sum. Real FV = nominal FV / (1 + inflation)^t. Regular deposits are included in nominal FV before the inflation adjustment.
With annual compounding, the exact real return is (1 + r) / (1 + inflation) − 1. Simply subtracting inflation from the return is an approximation, not the exact formula.
Worked example: $10,000 over 20 years
With no additional deposits, 7% nominal annual growth compounded monthly, and 3% annual inflation, $10,000 becomes $40,387.39 in 20 years. Dividing by 1.03^20 gives $22,361.52 of today’s purchasing power.
With zero investment return and the same inflation assumption, the account still holds $10,000, but its purchasing power falls to $5,536.76. Buying goods that cost $10,000 today would require about $18,061.11 in 20 years at that inflation rate.
A constant inflation rate is a simplifying assumption. Housing, healthcare, education, and other personal costs can rise at different rates, so compare multiple inputs instead of treating one result as a promise.