Inflation Calculator
See how inflation changes the value of money over time. Enter an amount, a year range, and an average inflation rate to calculate the adjusted value and purchasing power change.
Adjusted amount
$0.00
Total inflation
0%
Purchasing power change
$0.00
About Inflation
Inflation measures how the general price level of goods and services rises over time, eroding the purchasing power of money. A dollar today buys less than it did 20 years ago. Central banks typically target an annual inflation rate of around 2–3%. Over long periods, even moderate inflation compounds significantly: at 3% per year, prices roughly double every 24 years. This calculator uses the compound growth formula to project how a given amount of money changes in value between any two years at a specified average rate.
FAQ
How is inflation calculated?
This calculator uses the compound formula: Adjusted = Amount x (1 + rate/100)^years. It shows what an amount from the past would be equivalent to in today's dollars, or how much future dollars will be worth in today's terms.
What is the Consumer Price Index (CPI)?
The CPI is a measure published by the Bureau of Labor Statistics that tracks the average change in prices paid by consumers for a basket of goods and services. It is the most commonly used indicator of inflation in the United States.
How does purchasing power work?
Purchasing power refers to the quantity of goods or services you can buy with a unit of currency. When inflation rises, each dollar buys less, reducing your purchasing power. For example, if inflation totals 50% over a period, something that cost $100 now costs $150 — your original $100 can only buy two-thirds of what it used to.
What is a good average inflation rate to use?
The long-term historical average for U.S. inflation is about 3% per year. However, actual rates vary: the 2010s averaged around 1.8%, while 2021–2023 saw rates above 5%. Use the default 3% for general estimates, or adjust to match a specific period.