Inflation Impact on Investments

See the long-term impact of inflation on your investment's purchasing power.

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Investment Details

$
%
%
20 years

Inflation Impact

Real (Inflation-Adjusted) Value$284,445
Nominal Value$466,096
Purchasing Power Lost$181,651
Real Return Rate5.4%
How it works›

Model and assumptions. Compounds prices by (1 + inflation rate)^years and discounts nominal amounts by the same factor to express purchasing power. Inflation is held constant; the estimate does not predict a particular household basket or future price index.OpenStax: time value of moneyOpenStax: annuity formulas