Inflation Calculator
See how inflation erodes purchasing power · Updated 2026
How Inflation Affects FIRE Planning
Inflation is one of the biggest risks to any retirement plan, but especially to FIRE because of the longer time horizon.
At 3% average inflation: $40,000/year today = $97,090/year in 30 years. That means your $1,000,000 FIRE number needs to be $2,427,262 to maintain the same lifestyle.
The 4% rule already accounts for inflation by increasing withdrawals annually by the CPI rate. But if actual inflation exceeds the expected ~3%, your portfolio may deplete faster. This calculator helps you stress-test your assumptions.
| Years | 2% Inflation | 3% Inflation | 5% Inflation |
|---|---|---|---|
| 10 years | $82,035 | $74,409 | $61,391 |
| 20 years | $67,297 | $55,368 | $37,689 |
| 30 years | $55,208 | $41,199 | $23,138 |
| 40 years | $45,289 | $30,656 | $14,205 |
Inflation and Your FIRE Number
The relationship is simple but powerful: your FIRE number must grow with inflation. If you plan to retire in 20 years, your target today of $1,000,000 needs to be much larger in future dollars.
Quick rule: At 3% inflation, double your time horizon to estimate the multiplier. For 20 years: multiply by 1.8. For 30 years: multiply by 2.4.
Frequently Asked Questions
How is inflation calculator calculated?
The formula is: Future Value = Present Value × (1 + Inflation Rate)^Years. Enter your values above and click Calculate to see your personalized result instantly. Inflation is the silent wealth killer. At 3% average inflation, $100,000 today will have the purchasing power of just $55,368 in 20 years — meaning you'll need $180,611 in future dollars to buy what…
What inputs do I need for the inflation calculator?
You need: Amount, Years, Inflation Rate. Default values are pre-filled — adjust them to match your personal finances for a customized result.
Is the inflation calculator free to use?
Yes — all TorchFI calculators are completely free. No registration, no email required. Calculations run entirely in your browser for maximum privacy. We never see or store your financial data.
How does the inflation calculator help with FIRE planning?
Calculate how inflation reduces the purchasing power of your money over time. See what $100 today will be worth in 10, 20, or 30 years at different inflation rates. This calculator helps you make data-driven decisions about your financial independence journey instead of relying on guesswork.