Free Calculator
Inflation & Purchasing Power Calculator
A dollar today and a dollar in 20 years aren't the same dollar. This shows exactly what the gap actually is — both directions.
What that looks like over time
Why 2.8% by default: that's the Bank of Canada's long-run inflation target range midpoint (1–3%, targeting 2%, with recent years running somewhat above that). It's a reasonable planning assumption, not a guaranteed number — actual inflation varies year to year, sometimes significantly.
Why this matters for anything you're projecting
A retirement plan, a savings goal, a salary negotiation — all of them are quietly assuming something about inflation, whether that's stated or not. Using "today's dollars" consistently, the way this calculator does, is the only way to compare a number from today against a number from 20 years from now without accidentally comparing apples to a much larger pile of oranges.
Want every projection in the full tool to automatically show today's-dollars, not just this one calculation?
Try the full tool →See how compounding and inflation interact together: The mechanics of compounding →