This calculator has two sections.
In the first panel, enter any two years and a Dollar Amount in the three
input boxes. The calculator shows answers looking both forward and
backward with your Dollar entry. For example, change the first Year
entry to 1977 and see that looking forward it would take $28,892 today
to buy what $10,000 bought in 1977.
Looking backward,
$10,000 today will only buy what you could have bought for $3,461 in
1977. Considering future inflation should be a key part of your
planning. Over this 25-year period, annual inflation averaged 4.34% and
the dollar lost 65.4% of its purchasing power.
For a shock, enter 1972 and 1982 for the
year entries. During this period of only 10 years, you will see that the
dollar lost more than one-half of its purchasing power (-56.5%).
The second panel looks into the future.
Enter your years until retirement and how long you may be retired. Then
enter your estimate of future annual inflation. The results may surprise
you. Inflation really is a major threat.
When
you change an entry box, click elsewhere on your screen and the
calculator will run.
The text and
calculators on this website are designed to be informational and
educational tools only, and when used alone, do not constitute
investment advice. The results presented by the calculators are
hypothetical and may not reflect the actual growth of your own
investments. The calculators are not intended to be a substitute for
qualified professional advice. Before using these calculators, you must
agree to their Terms
of Use.
