Inflation Calculator

See how inflation erodes purchasing power over time. Use historical US CPI data (1960–2024) or enter a custom inflation rate to compare the real value of money across years.

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How the Inflation Calculator Works

This calculator helps you understand how inflation affects the real value of money over time. It supports two modes: forward (projecting future cost) and backward (finding the equivalent past value of today's dollars).

Forward Mode — Future Value

Enter a dollar amount, start year, and end year. The calculator compounds inflation year over year to show what that amount would be worth in future dollars. With CPI mode enabled, it uses actual US Bureau of Labor Statistics data for historical years, giving you precise real-world results.

Backward Mode — Historical Equivalent

Enter today's dollar amount and a past year. The calculator works backward to tell you what that money was worth in the earlier year's dollars. For example, $100 today was equivalent to about $54 in 2000 — meaning prices have nearly doubled.

CPI Data & Custom Rates

The calculator includes Consumer Price Index data for every year from 1960 to 2024. When CPI mode is enabled, it uses the actual ratio of CPI values between your chosen years. Uncheck CPI mode to use a flat custom rate — useful for projecting into the future or modeling different scenarios.

Understanding the Results

The SVG Chart

The visual chart plots how your dollar's purchasing power erodes year by year. The shaded area represents the value lost to inflation, making it easy to see the compounding effect over long periods.

Tips to Hedge Against Inflation

Frequently Asked Questions

What is inflation?
Inflation is the rate at which the general level of prices for goods and services rises over time, reducing the purchasing power of money. If inflation is 3% per year, something that costs $100 today would cost $103 next year.
What is the average US inflation rate?
The historical average annual US inflation rate is roughly 3% since 1960. However, it varies widely — from near 0% in some years to over 13% in 1980. The Federal Reserve targets 2% annual inflation.
How is inflation measured?
In the US, inflation is primarily measured by the Consumer Price Index (CPI), published monthly by the Bureau of Labor Statistics. CPI tracks price changes for a basket of goods and services including food, housing, transportation, and healthcare.
What is purchasing power?
Purchasing power is the amount of goods or services one unit of currency can buy. As prices rise due to inflation, each dollar buys less — meaning your purchasing power decreases over time.
How do I protect my money from inflation?
Common inflation hedges include investing in stocks, real estate, Treasury Inflation-Protected Securities (TIPS), I-bonds, and commodities. Keeping large amounts in a low-interest savings account means losing purchasing power over time.
What's the difference between nominal and real value?
Nominal value is the face value of money without adjusting for inflation. Real value (or inflation-adjusted value) accounts for changes in purchasing power. For example, $50,000 salary in 1990 had much more purchasing power than $50,000 today.

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