Interpretation guide
How to Read the Personal Inflation Chart
The personal inflation chart shows your current basket cost and how it could grow over time under your assumptions, compared with a zero-inflation baseline. It is meant to show direction, not certainty, so you can compare ranges without guessing the future.
Published: December 30, 2025 · Updated: December 30, 2025 · By FinToolSuite Editorial
Disclaimer
- Educational purposes only, not financial advice.
- Examples are illustrative and simplified.
- Results depend on your inputs and assumptions and are not guaranteed.
- The chart is a math projection using steady assumptions, not a forecast.
- See the Privacy Policy for handling details.
Open the personal inflation basket calculator
Generate the chart, compare scenarios, and download your view.
Quick answer
- Baseline line is what your basket costs if prices never rise.
- Projected line is your basket cost if your personal inflation rate holds steady.
- The gap widens because growth compounds over years.
- Use scenarios to compare ranges, not certainty.
Baseline vs projected line
The baseline is a reference line at zero inflation. The projected line uses your personal inflation chart assumptions and steady rate. Neither line is a promise; they are views to help you compare.
| Line | What it means | What it does not mean |
|---|---|---|
| Baseline | Your basket if inflation were 0% forever. | Not a prediction that prices will freeze. |
| Projected | Your basket if your personal rate stayed steady. | Not a guarantee that costs will follow this line. |
Why the curve bends upward
Compounding applies your rate every year, so each year builds on the prior year’s cost. That is why the projected line bends upward. For a deeper chart explainer, see the compound interest chart.
What drives the slope
Three levers change the slope: starting spend, rate, and years. Higher starting spend lifts the whole chart. A higher rate makes the curve steeper. More years widen the gap between baseline and projected.
| Change | What you see |
|---|---|
| Higher starting spend | Both lines start higher; the gap size depends on the rate. |
| Higher rate | Projected line bends up faster and the gap widens sooner. |
Mini example
Round numbers to keep it clear. Start at $24,000 per year. Projected rate example: 4% steady.
| Year | Baseline (0%) | Projected (4%) |
|---|---|---|
| 0 | $24,000 | $24,000 |
| 5 | $24,000 | ≈ $29,200 |
| 10 | $24,000 | ≈ $35,500 |
Takeaway: the baseline stays flat, while the projected line climbs over time because of compounding. Change the rate or the starting spend and the curve moves.
How to use the chart safely
- Use low, base, and high scenarios.
- Focus on direction and range, not exact decimals.
- Rerun when your basket changes.
- Remember it is a model, not a guarantee.
Common chart misunderstandings
- “Baseline is a prediction.” It is only a reference.
- “One line is guaranteed.” The chart is illustrative.
- “The curve means costs will match this exact path.” It is a model; see the projection table for numbers.
For exact yearly numbers, read the projection table guide.
FAQ preview
What does the baseline line mean?
It is a zero-inflation reference, not a forecast.
Why does the projected line curve upward?
Compounding applies your rate each year, so it bends up over time.
What if my inflation changes each year?
Rerun a scenario with updated rates to see a new curve.
Does the tool use CPI?
No. It uses your inputs, not CPI.
How do scenarios affect the chart?
Each scenario creates its own projected line for side-by-side viewing.
Can I export the chart?
Use the download option in the calculator.
Is this financial advice?
No. It is educational and depends on your inputs; outputs are estimates.