Inflation Calculator
Understand exactly how rising prices will erode your savings so you can plan withdrawals and investments accordingly.
About the Inflation Calculator
This Excel inflation calculator reveals how rising prices erode the purchasing power of your money over time. Enter a starting amount, start and end years, and an annual inflation rate to instantly see future nominal value, real purchasing power, total loss, percentage eroded, and how long it takes for prices to double using the Rule of 72. A detailed 20-year erosion table tracks nominal value, purchasing power, cumulative loss, and remaining power year by year, with conditional formatting that highlights critical thresholds. An integrated line chart visually contrasts nominal value against purchasing power, making this an invaluable tool for retirement planning when paired with the Retirement Withdrawal Calculator for long-term financial decisions.
Inflation Calculator Features
- Future nominal value and real purchasing power calculations
- Rule of 72 doubling time estimate
- 20-year erosion table with cumulative loss tracking
- Conditional formatting highlighting critical thresholds
- Line chart contrasting nominal value against purchasing power
How to Use This Inflation Calculator in Excel
- 1
Enter starting values
Input your starting amount, start year, end year, and expected annual inflation rate.
- 2
Review impact summary
Instantly see future nominal value, real purchasing power, total loss, and the Rule of 72 doubling time.
- 3
Explore the erosion table
Review the 20-year breakdown of nominal value, purchasing power, and cumulative loss year by year.
- 4
Visualize the trend
Use the line chart to see how nominal value and purchasing power diverge over time.
Inflation Calculator FAQ
- What is the Rule of 72?
- The Rule of 72 estimates how many years it takes for prices to double at a given inflation rate. Divide 72 by the annual rate to get the approximate doubling time.
- How many years does the erosion table cover?
- The detailed erosion table tracks nominal value, purchasing power, cumulative loss, and remaining power for 20 years with conditional formatting for critical thresholds.
- Can I use this for retirement planning?
- Yes, the calculator is designed to help with retirement planning and long-term financial decisions by showing exactly how inflation erodes your savings over time.
