Inflation Calculator for Canada
See how inflation erodes purchasing power and what money will be worth in the future.
Region: Canada (CAD)
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Quick Tip
Use 2% for the Bank of Canada target and try 3% for a more cautious long-term plan.
About This Tool
Why use Inflation Calculator?
Statistics Canada publishes the Consumer Price Index each month. The Bank of Canada aims to keep inflation at 2%, the midpoint of a 1% to 3% control range.
Inflation affects rent, groceries, wage negotiations and retirement plans. Use the calculator to express a future cost in today's dollars or to see how much a fixed sum loses in value over time, then compare that with your after-tax return on savings.
Key Benefits
Future cost estimate
Estimate what today's expenses may cost in Canadian dollars years from now.
Real value of money
See how inflation erodes the buying power of cash savings.
Wage and pension check
Test whether raises or indexed benefits keep pace with rising prices.
How to use Inflation Calculator
- 1
Use 2% for the Bank of Canada target and try 3% for a more cautious long-term plan.
- 2
Enter an amount of money.
- 3
Add an expected annual inflation rate.
- 4
Choose the number of years.
- 5
Review the future cost, today's equivalent value and total inflation.
Best use cases
Estimate how much income you will need in retirement to keep today's lifestyle.
Check whether your savings rate is actually beating inflation.
Work out what a pay rise needs to be just to keep pace with prices.
Estimate future school, university or wedding costs.
Inflation Calculator FAQs
What is the Bank of Canada's inflation target?
The Bank of Canada targets 2% inflation, the midpoint of a 1% to 3% range, measured by the total Consumer Price Index.
Where can I find Canada's inflation rate?
Statistics Canada releases the Consumer Price Index every month, including breakdowns by province and by category such as shelter and food.
How should inflation affect my savings plan?
Aim for an after-tax return above inflation. Registered accounts such as a TFSA can help because growth inside them is not reduced by tax.
Which currency does this inflation calculator use?
Amounts are shown in Canadian Dollars (CAD). The formulas are the same everywhere, so you can switch to another country version if you need a different currency.
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