The Inflation Calculator shows how the purchasing power of money changes over time. It helps you understand how much a dollar amount from the past would be worth today, or how much today's money will be worth in the future, based on historical or projected inflation rates.
Inflation is the gradual increase in prices over time, which erodes purchasing power. What cost $100 in 2000 would cost approximately $180 in 2024 due to inflation. The average US inflation rate has been about 3.2% per year historically. Understanding inflation is crucial for retirement planning, salary negotiations, and long-term financial decisions.
How the Formula Works
Future Value = Present Value × (1 + Inflation Rate)^Years. Purchasing Power = Present Value ÷ (1 + Inflation Rate)^Years.
Nominal value adjusted for inflation: Adjusted = Value × (1 + rate)^years
Purchasing power loss: Today's $1 = $1 ÷ (1 + rate)^years in future dollars
Real return = Nominal return − Inflation rate (approximate)
Rule of 72 for inflation: Prices double in 72 ÷ inflation rate years
How to Use This Calculator
Enter a dollar amount
Enter the starting and ending years, or the inflation rate
View how the value has changed in real purchasing power
Tips & Best Practices
Your investments need to earn more than the inflation rate to grow in real terms
Social Security payments are adjusted for inflation (COLA), but many pensions are not
When negotiating salary, factor in inflation — a 2% raise during 3% inflation is actually a pay cut
Use inflation-adjusted (real) returns when planning long-term financial goals