Inflation Calculator
Calculate how inflation affects purchasing power over time
Understand how inflation erodes your money's purchasing power over time. Essential for retirement planning and long-term financial decisions.
Frequently Asked Questions
What is the purpose of the Inflation Calculator?
The Inflation Calculator helps you understand how inflation impacts the purchasing power of your money over time.
How do I use the Inflation Calculator?
Input your initial amount, the inflation rate, and the number of years to see how inflation affects your purchase power.
What is the average inflation rate I should use?
The average inflation rate can vary, but a common historical rate is around 3% per year. You can use national averages provided by government sources.
Why is it important to consider inflation in personal finance?
Considering inflation is crucial as it affects the real value of your savings and investments, impacting your long-term financial goals.
Can I rely solely on this tool for financial decisions?
While the Inflation Calculator provides valuable insights, it's important to consider other financial factors and consult a professional for comprehensive planning.