# Inflation Calculator

**Current Price:**

**Price Increase:**

**Inflation Adjusted Value:**

Track the impact of inflation on your savings.

## Inflation Calculator

Inflation happens when the prices of goods and services keep increasing over a certain period. This means our money doesn’t buy as much as it used to and It results in a decline in the purchasing power of customers. Its main purpose is to measure how rising prices affect the economy during a year.

Inflation calculator helps everyone to understand how inflation affects the real value of your money over a certain period of time. Just enter the amount, select the year you want to adjust for inflation, and our calculator will instantly show you what that amount would be worth today after calculating the average rate of inflation.

The calculator makes it easy to see how inflation reduces the real value of your savings and investments. Adjusting for inflation gives you a more accurate picture of your money’s future spending power.

Whether you are budgeting for retirement, calculating investment returns, or estimating future expenses this situation you need to know all about inflation. Our calculator exactly do this for you, this calculator helps to find how much your portfolio worth in the current market, what is the current purchasing power. This is most important point while you plan a long-term investment.

## How does our Inflation Calculator work?

Our inflation calculator is an online tool used by investors to estimate and calculate the impact of inflation. In this tool we use consumer price index (CPI) or other inflation indices to estimate the relative value as per your input of money across different time periods. Here’s how it typically works:

Basic Knowledge –

How is Inflation Calculated – Inflation is calculated on the basis of Consumer Price Index. It measures the change in the price of goods and services by taking a weighted average value of each.

**CPI = (Cost of Fixed Basket of Goods and Services in Current Year/ Cost of Fixed Basket of Goods and Services in Base Year) *100**

Formula for Inflation: **Inflation = ((CPI x+1 – CPIx)/ CPIx))*100**

Note: CPIx is the Initial Consumer Price of the Index

Inflation calculator works on the following formula:

In this Inflation Calculator we uses a formula called the Adjusted Cost to determine the future purchasing power of your money according to inputs.

**Adjusted Cost = Current Cost × (1+ Inflation Rate/100) ^ No of Years**

In the above formula: Current Cost is the initial cost, Inflation Rate is average annual rate of inflation in percentage and Number of Years is time period over which you want to calculate the inflation-adjusted cost.

**Current Cost:** Enter your current cost value.

**Rate of Inflation (%): **Here, you need to enter the average annual rate of inflation in percentage.

**Time Period (Years):** Enter time period over which you want to calculate the inflation-adjusted cost.

**Final Result:** The final result after entering these values into our inflation calculator, users can obtain an estimate of the item’s cost in the future, also we use pie chart for visual representation to understand better.

Our calculator works with this module, to get answers in a fraction of a second…

## Inflation Example

For example, just imagine you want to find the future cost of a vacation. Now the current cost of the vacation package is around 2,500 but the historical data suggests an average annual inflation rate growing approximate 6% every year. Now you want to find the cost after the 5 years.

- Current Cost: 2,500
- Rate of Inflation (%): 6
- Time Period (Years): 5 years

**Calculations :**

**Formula:** Adjusted Cost = Current Cost × (1+ Inflation Rate/100) ^ No of Years

Adjusted Cost = 2,500 x (1 + 0,06)^(5)

Adjusted Cost = 3,345

Result: After 5 years with the given data the inflation estimated cost of your vacation package is approximately 3,345 at 6% average annual inflation rate.

An inflation calculator takes care of this calculation for you, in this result we providing a direct future value. This allows you to make informed financial decisions by understanding how inflation affects your on your savings goals.

## Advantages of Trademint’s Inflation Calculator

TradeMint offers the best Inflation calculator, which provides the following advantages

- Plan your investments based on inflation to get a clear idea, about future performance and beat the inflation.
- Showing accurate results with visual representation helps save time during a manual calculation.
- You can compare different scenarios by changing the investment amount, and duration.

## Final Words

By using our Inflation calculator, you can approach your investment decisions with more information that improve your long-term financial planning.

Inflation calculators is the powerful tools for every individuals, businesses, and investors to estimate future costs and plan accordingly.

Start planning your financial future today!

**Remember:** This Inflation calculator provides an estimation. Actual returns may vary depending on market performance and other factors.

Thank you for visiting TradeMint….