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Fixed-Rate Inflation Calculator

By Hesaplayıcı

The inflation calculator assumes one inflation rate for every year and shows what an amount at today's prices will cost in the future and what it will buy in today's prices. Enter the amount, the yearly inflation rate and the number of years. It shows the total inflation for the period; it does not use historical CPI data.

Worked example: 1,000 at 10% inflation a year for 5 years

Future cost

1,610.51

Purchasing power
620.92
Total inflation
61.05%
Step by step
  1. Future cost

    F = A × (1 + r)^t

    F = 1,000 × (1 + 10%)^5 = 1,610.51

  2. Purchasing power

    P = A / (1 + r)^t

    P = 1,000 / (1 + 10%)^5 = 620.92

How to use

  1. Enter the amount at today’s prices.
  2. Enter the yearly inflation rate you assume, in percent.
  3. Enter how many years ahead you want to look. Fractional years are allowed.
  4. Press Calculate.

Formula

The future cost is F = A × (1 + r)^t and the purchasing power is P = A / (1 + r)^t. A is the amount today, r the yearly inflation rate as a decimal and t the number of years.

The total inflation for the period is ((1 + r)^t − 1) × 100 percent.

Worked example

The worked example on this page runs the calculator’s first example step by step: first the future cost, then the purchasing power. When you calculate with your own values, the same steps appear in the result.

Limits

The calculator assumes one rate for every year; real inflation changes from year to year. It does not use TÜİK CPI data for past periods. The result is a projection, not a forecast.

Frequently Asked Questions

What is inflation?

Inflation is the rate at which the general level of prices for goods and services rises. As prices rise, the same amount of money buys less.

How is the effect of inflation calculated?

The future cost is Amount × (1 + inflation rate)^years. The purchasing power is Amount ÷ (1 + inflation rate)^years.

Does this calculator use past inflation data?

No. It projects forward with the fixed rate you enter. For the real inflation of past periods in Türkiye, see the consumer price index (CPI) data of TÜİK, the Turkish Statistical Institute.

Calculation rules

  • The same inflation rate is assumed for every year. Real TÜİK data is not used.
  • Prices grow with compounding every year: F = A × (1 + r)^t. Fractional years use a fractional exponent.
  • Results are not rounded.
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