Inflation Calculator
See how Australian inflation erodes your purchasing power over time, or estimate a future cost using your own assumed annual inflation rate.
Your results
Calculation breakdown
- Future cost
- $100,000.00 × (1 + 3%)^10 = $134,391.64
- Purchasing power
- $100,000.00 ÷ (1 + 3%)^10 = $74,409.39
Assumptions
- Assumes a constant annual inflation rate over the full period.
- Future cost shows what today's amount will cost later; purchasing power shows what today's amount would be worth in today's dollars if it grows at the inflation rate.
How this calculator works
Inflation reduces the purchasing power of money over time. This calculator shows both what an amount today will cost in the future at your assumed inflation rate, and what a future amount is worth in today's dollars.
Frequently asked questions
What inflation rate should I use?
The Reserve Bank of Australia targets 2–3% inflation over time, but actual annual inflation varies. Use the RBA's published CPI figures for a realistic assumption.
What is purchasing power?
Purchasing power is what a sum of money can actually buy. As prices rise, the same dollar amount buys less, so purchasing power falls.
Does this use real historical inflation data?
No — you enter your own assumed rate, applied consistently for every year in the projection.
Results are estimates only and are not financial, tax, legal or credit advice.