How does inflation impact my standard of living?

Inflation can erode purchasing power. For example, a dollar today cannot buy the same amount of goods and services it could 20 years ago. It will continue to erode purchasing power in the future. Use this calculator to determine the impact inflation may have on your standard of living.

Assumptions

Number of years for the analysis ?

How far into the future you want to project your current budget.

Estimated inflation rate ?

The average yearly rate at which prices are assumed to rise.

10 Year Historic Inflation Rate. 10-year U.S. inflation average 2.9% 2015 0.1%, 2016 1.3%, 2017 2.1%, 2018 2.4%, 2019 1.8%, 2020 1.2%, 2021 4.7%, 2022 8.0%, 2023 4.1%, 2024 2.9% Source U.S. Department of Labor

Monthly or annual figures? ?

Monthly Annual

Whether the amounts you enter below are monthly or yearly totals.

Expenses

Mortgage payment or rent

Vacation home (mortgage)

Automobile loan(s)

Personal loan(s)

Charge accounts

Federal income taxes

State income taxes

FICA (social security taxes)

Real estate taxes

Utilities

Food

Child care

Medical, dental and disability insurance

Advanced options 18

Other taxes

Household repairs and maintenance

Clothing and laundry

Educational expenses

Automobile expenses (gas, repairs, etc.)

Other transportation expenses

Life insurance premiums

Homeowners (renters) insurance

Automobile insurance

Entertainment and dining

Recreation and travel

Club dues

Hobbies

Gifts

Major home improvements and furnishings

Professional services

Charitable contributions

Other and miscellaneous expenses

Enter your values and select Calculate.

The future total shown here is what it would cost to keep living exactly as you do now, with nothing added and nothing cut, after prices have risen for the number of years you chose. It is not a forecast of your income, savings, or any other part of your finances — it only tracks the price of your current lifestyle.

The two inputs that move this figure the most are the number of years and the inflation rate. A longer time horizon or a higher assumed rate compounds quickly, since inflation applies to a growing base each year. Try nudging either one to see how sensitive your future number really is.

This model does not account for changes in your spending habits, income growth, tax law changes, or one-time life events like a move, a new child, or a medical event. Real inflation also varies by category — housing, food, and health care often rise at different paces than the single rate used here.

It's worth revisiting this calculation whenever your budget changes meaningfully, when published inflation figures shift, or once a year as a general check-in. Having even a rough sense of how prices erode a fixed budget puts you ahead of the majority of people who never run the numbers at all.

This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.