Engineering ToolBox - Resources, Tools and Basic Information for Engineering and Design of Technical Applications!

Inflation Rate

Future value of money vs. inflation.

Sponsored Links
  • An inflation with rising prices will decrease the value of money over time
  • A deflation - the opposite of inflation or negative inflation - with decreasing prices will increase the value of money over time

Inflation Rate

The future value of money after periods with uniform inflation rates can be expressed as

F = P (1 - i)n          (1)


F = future value

P = present value

i = average inflation (or deflation) rate per period (positive for inflation, negative for deflation)

n = number of periods

Example - Inflation and Future Value

The future value of an amount of 100 after 10 periods and 4% of inflation rate can be calculated as

F = 100 (1 - 0.04)10 =

    = 66.5

Future Value of Present Money due to Inflation Rate - Calculator Table

This calculated table visualizes the decrease in future value of present money due to inflation rate and time.

Present Value of Money

Start Year

End Year

Max. Inflation Rate (%)

Inflation - Future Value vs. Present Value and Inflation rate chart

Download and print Inflation chart - Future Value vs. Present Value and Inflation Rate

Variable Inflation Rate

The future value of money after periods with variable inflation rates can be calculated as

F = P (1 - i1) (1 - i2) ...... (1 - in)                  (2)


i1..n = inflation rates of terms

The average inflation rate for all periods can be calculated as

(1 - ia)n = (1 - i1) (1 - i2) ...... (1 - in)                (3)


ia = 1 - [(1 - i1) (1 - i2) ...... (1 - in)]1/n                    (3b)


ia = average inflation rate

Sponsored Links

Related Topics

Related Documents

Sponsored Links

Engineering ToolBox - SketchUp Extension - Online 3D modeling!

3D Engineering ToolBox Extension to SketchUp - add parametric components to your SketchUp model

Add standard and customized parametric components - like flange beams, lumbers, piping, stairs and more - to your Sketchup model with the Engineering ToolBox - SketchUp Extension - enabled for use with the amazing, fun and free SketchUp Make and SketchUp Pro .Add the Engineering ToolBox extension to your SketchUp from the SketchUp Pro Sketchup Extension Warehouse!

About the Engineering ToolBox!


We don't collect information from our users. Only emails and answers are saved in our archive. Cookies are only used in the browser to improve user experience.

Some of our calculators and applications let you save application data to your local computer. These applications will - due to browser restrictions - send data between your browser and our server. We don't save this data.

Google use cookies for serving our ads and handling visitor statistics. Please read Google Privacy & Terms for more information about how you can control adserving and the information collected.

AddThis use cookies for handling links to social media. Please read AddThis Privacy for more information.


This page can be cited as

  • Engineering ToolBox, (2008). Inflation Rate. [online] Available at: [Accessed Day Mo. Year].

Modify access date.

. .


3D Engineering ToolBox - draw and model technical applications! 2D Engineering ToolBox - create and share online diagram drawing templates! Engineering ToolBox Apps - mobile online and offline engineering applications!

Scientific Online Calculator

Scientific Calculator

3 30

Sponsored Links