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Inflation & Input Costs Calculator

Compare an unchanged annual cost with a constant entered increase or decrease over a bounded planning horizon.

31 / COMPOUND A COST ASSUMPTION

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Starting values are illustrative. Use your own costs, rates and assumptions.

INPUT GROUP 01

Baseline and scenario

Check the assumptions before acting on a result.

Read the method and example

YOUR CALCULATION

The entered input-cost rate compounds once before each modeled year.

Final modeled annual cost

$57,881.25

Final-year increase over baseline

$7,881.25

Cumulative modeled cost

$165,506.25

Cumulative increase over unchanged cost

$15,506.25

Constant-rate input-cost scenario

Constant-rate input-cost scenario
YearUnchanged annual costScenario annual costAnnual increaseCumulative scenario cost
1$50,000.00$52,500.00$2,500.00$52,500.00
2$50,000.00$55,125.00$5,125.00$107,625.00
3$50,000.00$57,881.25$7,881.25$165,506.25

Keep the calculation

Saving is optional and stays on this device. Unsaved edits are not kept when you leave. CSV includes every input and the current results.

Illustrative inputs loaded. Replace them with your own assumptions.

How the inflation & input costs calculator works

The current annual cost is the baseline. Scenario year n = baseline × (1 + annual change percent ÷ 100)^n. Thus year 1 already includes one change. The same entered rate compounds in each modeled year.

Annual costs compound from unrounded values, then each displayed annual cost rounds half-up to cents. Cumulative scenario cost sums those annual costs and compares with the unchanged rounded baseline repeated for the same number of years. No discounting is applied.

Rates from −100% to +100% are accepted; −100% makes future modeled costs zero. This tool retrieves no CPI series and does not assume consumer inflation equals business input inflation. Enter an appropriate scenario and review its implications separately from a supplier price forecast.

Worked example

A 50,000 annual input cost with 5% yearly increases becomes 52,500 in year 1, 55,125 in year 2 and 57,881.25 in year 3. Cumulative cost is 165,506.25 versus 150,000 unchanged, an increase of 15,506.25. At 10%, year 3 cost is 66,550.

Sources and assumptions

The source material explains the underlying calculation or pricing structure. Entered prices, costs, schedules and scenario choices are your assumptions; this tool does not obtain supplier quotes or predict actual results.

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