Inflation Calculator

The Silent Killer of Wealth: Understanding Purchasing Power.

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. It is often referred to as the "Silent Tax" because it erodes your wealth without you seeing a single transaction leave your bank account. $100 today will not buy you $100 worth of goods in 10 years.

Nominal vs. Real Return

This is the most important concept for any investor. Your bank might pay you 5% interest (Nominal Return), but if inflation is 4%, your "Real Return" is only 1%. You are barely staying afloat. If inflation is 6%, you are actually losing purchasing power despite earning interest.

• Cash under the mattress: Guaranteed loss of value every year.
• Savings Account: Usually keeps up with inflation, but rarely beats it.
• Stocks/Real Estate: Historically the only assets that significantly outperform inflation over the long term.

Use this calculator to adjust your retirement goals—if you think you need $1 Million to retire, inflation might mean you actually need $2 Million.