Inflation

Example #1: How much in savings would be required 20 years into the future to have the equivalent of 1 million dollars today? Assume an annual inflation rate of 4%.

Enter the following values in the input fields:
Present Value = 1,000,000
Payment/Deposit = 0
Periods = 20
Periods/Year = 1
Interest Rate = 4
Payment/Deposit Timing does not matter since payment/deposit = 0.

A savings of $2,191,123.14 would be required 20 years into the future. See the screen snapshot of this calculation below:

Example #2: What would be the equivalent in today's dollars of 5000 dollars 20 years into the future? Assume 4% inflation. This is very similar to the previous example, except this involves solving for present value.

Enter the following values in the input fields:
Future Value = 5,000
Payment/Deposit = 0
Periods = 20
Periods/Year = 1
Interest Rate = 4
Payment/Deposit Timing does not matter since payment/deposit = 0.

Now click the Present Value button.

The equivalent in today's dollars would be $2,281.93. See the screen snapshot of this calculation below:

Examples

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