Based on US Bureau of Labor Statistics CPI-U annual averages. Actual inflation experienced may vary by category and region.
About the Inflation Calculator
What is this?
Inflation is the rate at which the general level of prices for goods and services rises, eroding the purchasing power of money over time. A dollar today buys less than a dollar did twenty years ago. This calculator shows how much a given amount of money in one year would be worth in another, helping you understand the real value of savings, wages, and investments.
How it is calculated
To adjust for inflation, the calculator uses the Consumer Price Index (CPI), which tracks the price of a representative basket of goods. The formula is: future value = present value × (CPI in target year ÷ CPI in base year). For example, if the CPI rises from 100 to 120, then 1,000 in the base year is worth 1,200 in the target year.
Reference ranges
Frequently asked questions
Why does inflation happen?
Inflation can be driven by demand exceeding supply (demand-pull), rising production costs (cost-push), or an expansion of the money supply. Most economies experience a mix of these factors.
How does inflation affect savings?
If the inflation rate exceeds the interest rate on your savings, the real value of your money falls. To preserve purchasing power, your returns need to at least match inflation.
What is the difference between nominal and real values?
Nominal values are expressed in current money; real values are adjusted for inflation. A 5% pay rise with 3% inflation gives a real increase of about 2%.
Inflation Calculator
See how purchasing power changes over time using official US CPI-U data from the Bureau of Labor Statistics.