MONEY EXPLORER 01 / INFLATION
What does inflation
do to your money?
Explore how purchasing power changes over time.
Your financial inputs stay on your device.
$55,368
Value in today’s dollars
↓ 44.6% purchasing power lost
Purchasing power over time
USD · today’s dollarsNominal: $100,000 · Value today: $55,368
View yearly values
| Year | Nominal balance | Value today |
|---|---|---|
| 0 | $100,000.00 | $100,000.00 |
| 1 | $100,000.00 | $97,087.38 |
| 2 | $100,000.00 | $94,259.59 |
| 3 | $100,000.00 | $91,514.17 |
| 4 | $100,000.00 | $88,848.70 |
| 5 | $100,000.00 | $86,260.88 |
| 6 | $100,000.00 | $83,748.43 |
| 7 | $100,000.00 | $81,309.15 |
| 8 | $100,000.00 | $78,940.92 |
| 9 | $100,000.00 | $76,641.67 |
| 10 | $100,000.00 | $74,409.39 |
| 11 | $100,000.00 | $72,242.13 |
| 12 | $100,000.00 | $70,137.99 |
| 13 | $100,000.00 | $68,095.13 |
| 14 | $100,000.00 | $66,111.78 |
| 15 | $100,000.00 | $64,186.19 |
| 16 | $100,000.00 | $62,316.69 |
| 17 | $100,000.00 | $60,501.64 |
| 18 | $100,000.00 | $58,739.46 |
| 19 | $100,000.00 | $57,028.60 |
| 20 | $100,000.00 | $55,367.58 |
A $100 item today would cost about $180.61 in 20 years at 3% annual inflation.
Same dollars.
Different buying power.
Inflation is a rise in the general level of prices. When prices rise, the same number of dollars buys less. Your balance can stay unchanged while its purchasing power falls.
The effect compounds. Each year’s price increase builds on the previous year’s prices. That is why a constant 3% annual inflation rate does not simply translate into a 60% loss of purchasing power over 20 years.
This explorer holds your dollar balance fixed and translates it into today’s purchasing power. It also shows how the price of a hypothetical $100 item changes under the same assumption. These are two views of the same price change.
Try zero inflation to see purchasing power stay constant. Then try a negative rate: in this hypothetical deflation scenario, lower prices mean each dollar buys more. Compare two rates to isolate the effect of changing just one assumption.
How we calculate it
Inflation is expressed as a decimal: 3% = 0.03. Years are whole years. Internal calculations are not rounded; displayed values are.
$100,000 ÷ 1.0320 ≈ $55,368
Assumptions & limitations
Constant annual inflation, a fixed nominal balance, no investment returns, taxes, fees, or additional cash flows. USD is the unit of account.
Actual inflation varies over time and across goods. Your personal experience may differ from aggregate CPI. The default 3% is an illustrative assumption, not current data or a forecast.
Sources & calculation standards
No live or historical data is used. Definitions are supported by the U.S. Bureau of Labor Statistics CPI FAQ. The constant-rate model is a mathematical scenario, not the BLS historical inflation calculator.
Calculations run in deterministic TypeScript functions with automated tests. Read our methodology and editorial standards.
Methodology version 0.1 · Reviewed September 27, 2026