Saving
Future nominal value of today's money
Grow today's amount forward at the inflation rate to see what it will take to buy the same things later.
The Formula
Future = present x (1 + i)^t
Grow today's amount forward at the inflation rate to see what it will take to buy the same things later.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| i | Inflation rate | rate | Annual rate as a decimal. |
What Each Symbol Means
irate
Inflation rate
Annual rate as a decimal.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate inflation adjusted value page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Inflation Adjusted Value, filed under Finance. Every number the guide produces comes from substituting into this one line.