Inflation & Purchasing Power Calculator
Money slowly loses buying power as prices rise. See what a sum of money today will be worth in the future — and how much you’d need later to keep the same standard of living.
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Frequently asked questions
What is inflation, simply?
Inflation is the gradual rise in prices over time, which means each dollar buys a little less than it used to. A 2% inflation rate means things cost about 2% more next year on average.
Why does inflation matter for my savings?
Money that just sits there (like cash) keeps the same number of dollars but loses buying power every year. To actually get ahead, your savings need to grow faster than inflation.
What inflation rate should I use?
The Bank of Canada targets about 2% per year over the long run, so 2% is a reasonable default. You can raise it to stress-test against higher-inflation periods.