Overview

Due to inflation, $100 that you have today doesn't have the same buying power in ten years time as it has today. Prices usually go up...

For example, if something costs $100 today, and prices rise at a rate of 2% per year, you'll need more than $100 in ten years time. On the other hand, you were able to buy a lot more with $100 ten years ago than you are able today.

Example

What will be the equivalent of $10,000 education cost on 1/1/2024 in 10 and 12 years time if inflation is estimated to be 2 %?

Set up the following cashflow or select the Inflation example in the Help > Examples menu.

Enter 2 into the rate field and select annual compounding.

Date	Type	Amount	Occurs	#	Comment
1-1-2024	inflow	10,000	once		Now
1-1-2025	balance date	1	anually	12	x years later

Switch to the Schedule tab.

The Balance column displays what you will need 1, 2, ..., 12 years after the start date to have the buying power of $10,000 on 1/1/2024.

Ten years later you'll need $12,189.94, and 12 years later you'll need $12,682.42.

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