What is the difference between today’s dollars and future dollars?

Future dollars are the dollars of the year in which an amount occurs. Today’s dollars express that future amount in current purchasing power using the scenario’s inflation assumptions.

For example, with 2% annual inflation, $10,000 today corresponds to about $12,190 ten years from now. Those can describe the same purchasing power. A larger future-dollar number does not necessarily mean you can buy more.

In the input forms, use the ordinary amount field for a future expense or income quoted in today’s purchasing power. Use the FUTURE currency field if you mean the actual nominal amount at its future start date. Complete one of the two amount fields.

In results, switch dollar views to compare on the basis you want. Changing the report view changes the presentation, not the underlying plan. When comparing saved scenarios, use the same basis on both.

When doing your own calculations, always use the Future dollars amounts.