Inflation Impact Analyzer

Project your portfolio's future value in real purchasing power.

Timeline & Rates

Current Portfolio ($)

Annual Growth (%)

Conservative (4%)10%Aggressive (15%)

Average Inflation (%)

Target (2%)3.5%High (10%+)

Time Horizon (Years)

Inflation at 3.5% means $1.00 today will only buy $0.50 worth of goods in 20 years.

Real Purchasing Power

$338,101

In today's dollars (Real Value)

Nominal Future Value$672,750

Purchasing PowerInflation Erosion

Real Yield (CAGR)

6.5%

Loss to Inflation

$334,649

The "Silent" Portfolio Killer

If your growth rate (10%) is less than inflation (3.5%), your wealth is actually shrinking in real terms. To build lasting wealth, your real return must stay positive.

Nominal vs. Real Returns

When planning for retirement, "Nominal" returns (the raw percentage growth) are deceptive. What matters is your "Real" return—the growth that remains after accounting for the rising cost of goods and services.

Nominal Value

The actual dollar amount you will have in your account in the future. It doesn't account for the fact that a gallon of milk or a house will likely cost much more than they do today.

Real Value

The "Purchasing Power" of your future dollars. It translates that future nominal amount back into today's terms, allowing you to gauge your standard of living.

Historical US Inflation

While the Federal Reserve targets a 2% long-term inflation rate, historical US inflation has averaged around 3-4% over several decades, with periods of much higher volatility. Planning with a conservative 3.5% inflation rate is often recommended for long-term safety.

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