Inflation-adjusted savings goal calculator

Plan for your future by accounting for inflation. Enter your current savings goal, the timeframe, and the projected annual inflation rate to see your inflation-adjusted goal.

Your numbers

Current goal amount ($) Enter the current amount you aim to save.

Years until goal Number of years until you plan to reach your goal.

Projected annual inflation rate (%) The expected average annual inflation rate as a percentage (for example, 3 for 3%).

Calculation results

Inflation-adjusted goal amount $67,196

Additional amount needed due to inflation$17,196

Increase from inflation34.4%

How your goal grows with inflation

Inflation-adjusted goalGoal in today's dollars

What is inflation and why does it matter?

Inflation is the rate at which the general level of prices for goods and services is rising, and consequently, the purchasing power of currency is falling. In simpler terms, it means your money buys less in the future than it does today.

For your savings goal, inflation is crucial because a fixed amount of money today will not have the same value in the future. To achieve a real savings goal (that is, maintain the same purchasing power), you need to save more than the nominal amount due to the eroding effect of inflation.

Inflation-adjusted goal = current goal x (1 + inflation rate) raised to the number of years. The calculation assumes the same inflation rate every year, which real inflation does not follow, so treat the result as an estimate. This calculator is for educational purposes and is not financial advice.