How is the future cost of living calculated?

Future cost = current cost × (1 + inflation)years. The calculator applies this to your monthly expenses and also shows the annual figure, the extra amount you would need, and the purchasing power today’s money keeps.

Which inflation rate should I use?

The calculator starts with your country’s 2026 national inflation, which is an IMF projection for a single year. Over many years, inflation can be higher or lower, so compare the low, base and high scenarios or enter your own assumption.

What is the income I need to keep today’s purchasing power?

It is your current income grown at the inflation rate over the same period. If your income rises more slowly than this, your purchasing power falls even though the number looks larger.

What does the purchasing-power result mean?

It shows what share of today’s buying power the same amount of money keeps after the chosen number of years — 1 ÷ (1 + inflation)years. At 5% for 10 years that is about 61%.

Can I enter expenses by category?

Yes. Open the optional category section and fill in any categories. Their total replaces the single monthly-expenses figure, and a breakdown table shows each category’s future cost at your chosen inflation rate.

Future Cost of Living Calculator — Impact of Inflation

Future cost of living calculator

See what your monthly expenses could cost in the future, and the income you would need to keep today’s purchasing power.

Monthly expenses over time in three inflation scenarios

Chart will appear once the inputs are valid.

Next: will your retirement savings keep up →

How to use this calculator

Enter your current monthly expenses, or use the optional category breakdown.

Check the inflation rate. It starts at your country’s national 2026 inflation; change it to test your own assumption.

Choose how many years ahead to look and, optionally, your current monthly income.

Compare the low, base and high scenarios and the income you would need.

Why future costs matter

Prices that rise a few percent a year compound. At 5% a year, something that costs 100 today costs about 163 in 10 years and about 265 in 20 years. Income that stays flat quietly buys less each year; planning for the cost of living in the future shows how much more you may need to earn or save. To see how much purchasing power money has already lost, try the Purchasing Power calculator.

Methodology

Future costs are today’s costs compounded at the inflation rate you choose. The same factor shows how much purchasing power today’s money keeps.

Future cost

Future Cost = Current Cost × (1 + inflation)^years

Purchasing power

Real Value = Nominal Value ÷ (1 + inflation)^years

Income needed

Required income = Current income × (1 + inflation)^years

Worked example

Monthly expenses of 3,000 at 5% inflation for 10 years: 3,000 × 1.05¹⁰ ≈ 4,887 a month.

Income of 4,000 would need to reach about 6,516 to keep the same purchasing power.

Assumptions

Inflation is the same every year; real inflation varies.
Low and high scenarios move your rate down and up by the larger of 1 percentage point or 40–50% of the rate.
Expenses change only through inflation — not lifestyle, family or housing changes.
Currency is a label only; no exchange-rate conversion is applied.

Data source: national inflation comes from the IMF World Economic Outlook (April 2026). The 2026 value is an IMF projection, not a finalized figure. Category inflation (Personal Inflation calculator) is a 2026 estimate: US figures use BLS CPI sub-indices; other countries are informed estimates from IMF sector data, national statistical agencies and World Bank WDI. Everything the calculators output is an estimate built on the assumptions you enter.

Disclaimer: Inflation Compass calculators provide illustrative estimates based on the assumptions and data entered. Actual inflation, investment returns, expenses, pensions, and retirement outcomes can differ.

What will your life cost in the future?