Inflation Calculator
Calculate the impact of inflation on purchasing power over any time period.
How to Use the Inflation Calculator
See how inflation erodes purchasing power over time. Enter an amount, a time period and an inflation rate to see what your money will be worth in the future — or what it was worth in the past.
- Enter an amount — the dollar amount to adjust for inflation (e.g. $100).
- Enter start and end years — the time period to calculate over (e.g. 2020 to 2030). You can also go backwards.
- Enter the average annual inflation rate — the yearly inflation rate to apply (default 3%). The US historical average is roughly 3.2% since 1913.
- Review results — see the equivalent future value, purchasing power and total inflation over the period.
The formula used is: Future Value = Amount x (1 + rate)years. This applies a constant average inflation rate over the given period.
Frequently Asked Questions
What is inflation?
Inflation is the rate at which the general price level of goods and services rises over time, reducing the purchasing power of money. If inflation is 3%, something that costs $100 today will cost about $103 next year.
What is a typical inflation rate?
The US has averaged about 3.2% inflation per year since 1913. The Federal Reserve targets 2% annual inflation. In recent years (2021-2023), inflation spiked to 5-9% before returning closer to the target. Use 2-3% for long-term projections.
How does inflation affect savings?
If your savings earn less than the inflation rate, your purchasing power decreases over time. For example, $100,000 in a savings account earning 1% while inflation is 3% effectively loses about 2% of purchasing power each year.
Can I calculate backwards in time?
Yes. If you set the start year after the end year, the calculator works in reverse — showing what an amount from the past would be worth today adjusted for inflation.
Is this the same as CPI calculation?
This is a simplified version using a constant inflation rate. Official CPI (Consumer Price Index) calculations use actual year-by-year data from the Bureau of Labor Statistics. For rough estimates and future projections, a constant rate is sufficient.
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