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Inflation and Retirement Calculator

How does inflation affect your purchasing power?

I've saved
$
for retirement, growing at a rate of
%
per year
. At
%
inflation, what will my purchasing power be
years from today?

How will my annual expenditures of
$
increase?


If I earn an annual income of
$
growing at a rate of
%
per year, will I be able to maintain my standard of living in the coming years?
View Results
Please enter a number in the box above

Step One: Cash and Inflation

Calculate the purchasing power of your cash accounts at a guesstimated rate of inflation.

Enter Values

Step Two: Asset Growth vs Inflation

Calculate the purchasing power of your assets using a projected growth rate.

Add Growth Rate

Step Three: Cost of Living Increase

Calculate how your annual expenses will increase to maintain your standard of living.

Add Expenses

Final Step: Retirement Scenario

Calculate how you would cover your annual expenses using income from interest, an additional income stream, and withdrawals for a look into the possible future.

Add Income

Purchasing Power of Sitting Cash at Annual Inflation

Year Purchasing Power:
What $ can buy you (in today's dollars)
Percentage Decrease Net Loss in Purchasing Power
Equities -
-55%
At annual inflation, sitting cash would lose of its purchasing power by the year .
Scenario values computed are a projection based on a flat, recurring annual inflation rate input by the user. Actual inflation rates are highly variable and dependent on a multitude of factors, such as market health and fiscal policy.

Purchasing Power of Assets Growing at vs Inflation

Year Asset Growth Cost of $ of goods and services Net against Inflation Remaining Purchasing Power
Even though your assets are growing by each year, due to annual inflation, you would have worth of purchasing power by the year .
Scenario values computed are a projection based on a flat, recurring annual inflation and asset growth rate input by the user. Actual inflation and asset growth rates are highly variable and dependent on a multitude of factors, such as investment strategy, market health, and fiscal policy.

Income Needed to Maintain a $ Standard of Living

Year Annual Expenses Percent Increase Additional Income Needed to Maintain Standard of Living
100% Silver Silver +
+204%
+
100% Gold Gold +
+352%
+
At inflation, annual expenses of $ in 2022 would increase to by the year .

If you wanted to maintain your current standard of living, you would need to spend an additional in .
The values presented are a projection based on a flat, recurring annual inflation rate and annual expenses input by the user. This model does not take into account the possibility of new and cheaper goods and services that could reduce standard of living costs.

Retirement Scenario: Covering the Rising Cost of Living with Asset Interest, Income, and Withdrawals

Year Asset Value Asset Interest
( interest used as income)
Annual Income
( Annual Compounding Growth)
Retirement Income (Asset Interest + Annual Income) Cost of Living
($ increasing by )
Budget Surplus/Deficit After Cost of Living Expenses
Using your combined income and asset interest to cover the rising cost of living, and adding / subtracting the net difference from your savings, your assets would to by the end of .
Scenario values computed are a projection based on a flat, recurring annual inflation, asset growth, and income growth rates input by the user. This model does not take into account the possibility of new and cheaper goods and services that could reduce standard of living costs. Actual inflation, asset growth, and income growth rates are highly variable and dependent on a multitude of factors.
U.S. National Debt:

Disclaimers:

  • Data entered into the calculator is not stored, kept, or redistributed in any way. Any values you provide are used solely for the purpose of computing the scenarios presented. Augusta respects your privacy.
  • We are a professional and independent site that aims at providing valuable information for people interested in retirement investing. Our content does not constitute financial advice. You are encouraged to talk to your financial advisor before making any investment decision. This inflation calculator should be used for research or informational purposes only. Do not rely on this tool for forensics or precision. This tool assumes no transaction fees, management fees, storage fees, or anything of that nature to determine how the performance of your investments may offset the loss of your purchasing power.
  • The purchasing power figures provided by Augusta’s Inflation and Retirement Calculator are computed using Time Value of Money (TVM) formulas, normalized against a flat, input inflation rate. Augusta provides no guarantees on the accuracy of the figures, as the actual value of money will change based on a variable inflation / interest rate. The inflation calculator simulates what would happen in a flat inflation / interest rate scenario.
  • Moreover, the default inflation rate of 15% is not reflective of the C.P.I. but is to demonstrate the dramatic effect of inflation on purchasing power. Users are encouraged to enter an inflation rate that aligns with their own expectations.