How to use it
- Use the formula below with your own figures.
The formula
Future price = today's price × (1 + inflation)ⁿ.
Worked example
A $20,000 car at 3% inflation is about $26,900 in 10 years.
Frequently asked questions
Is inflation steady?
No — it varies year to year.
Why project?
To plan big future purchases.
Tips
- Compare money across years in real terms.
- Hold assets that grow at or above inflation.
- Cash quietly loses value when prices rise.
Key terms
- CPI
- A price index for a basket of goods.
- Real return
- Return after inflation.
- Purchasing power
- What a sum can actually buy.