Inflation Calculator
Calculate how the purchasing power of money has changed over time. See what a dollar from the past would be worth today, or vice versa.
Data available from 1950 to 2024
Enter an amount and years to see how inflation has affected purchasing power.
How It Works
This calculator uses the Consumer Price Index (CPI) published by the Bureau of Labor Statistics to measure inflation. The CPI tracks the average change in prices paid by consumers for a basket of goods and services over time.
The formula is: Adjusted Amount = Original Amount × (CPI in Target Year ÷ CPI in Original Year)
Frequently Asked Questions
What is inflation?
Inflation is the rate at which prices for goods and services rise over time, decreasing the purchasing power of money. If inflation is 3%, what cost $100 last year costs $103 this year.
What is a normal inflation rate?
The Federal Reserve targets 2% annual inflation as healthy for the economy. The historical average in the US is about 3% per year. Rates above 5% are generally considered high.
Why does inflation matter for savings?
If your savings don't grow faster than inflation, you're losing purchasing power. $1,000 saved today will buy less in 10 years due to inflation, which is why investing for growth is important for long-term savings.
How accurate is this calculator?
This uses official CPI data but provides averages. Individual experiences vary—housing, healthcare, and education have inflated faster than the average, while electronics have generally decreased in price.