Inflation Calculator
See how inflation compounds over time — what your money will be worth in the future, or what a past amount is worth today.
*Estimates only, based on a flat average rate. Actual inflation varies year to year and by category. Not financial advice.
Want to see how your savings can outpace inflation?
Compound Interest Calculator📉 Understanding Inflation's Bite
Inflation is a silent tax on cash. Here's the math and mindset behind protecting your money's value.
How it Works
Prices compound upward each year at the inflation rate, the same way interest compounds a savings balance. This calculator applies that compounding forward (future cost) or backward (past value) to your amount.
The Formula
Future Cost = Amount × (1 + rate)^years. Past Value works in reverse: Equivalent Value = Amount ÷ (1 + rate)^years.
Pro Tip
Cash sitting idle loses value every year. Assets that historically outpace inflation — like diversified index funds — help preserve long-term purchasing power better than a low-yield savings account.
Frequently Asked Questions
How does this inflation calculator work? +
Enter a starting amount, an average annual inflation rate, and a number of years. The calculator compounds the rate year over year to show what that amount would cost in the future, and separately shows how much today's purchasing power has shrunk in real terms.
What inflation rate should I use? +
The long-run US average annual inflation rate (CPI-U) since 1913 is roughly 3.1%. Recent decades have run closer to 2-3% in calm years, but spiked above 8% in 2022. For long-term planning, 3% is a common conservative default; for short-term projections, use the latest published CPI figure.
Why does a small inflation rate matter so much over time? +
Inflation compounds annually just like interest. At just 3% per year, prices roughly double every 24 years (the Rule of 70: 70 divided by the rate). Over a 30-year retirement, even mild inflation can cut purchasing power by more than half if income doesn't keep pace.
How is this different from a compound interest calculator? +
Compound interest calculators grow money you're saving. This calculator does the mirror image: it shrinks the real value of money you're holding or spending, showing how many future dollars you'd need to match today's buying power, or how little today's dollars will be worth later.
Can I use this to adjust historical prices, like an old salary or price tag? +
Yes. Enter the historical amount, the number of years since then, and an average inflation rate for that period, then switch to "Past Value" mode. This approximates what that dollar figure is equivalent to today, though real CPI data varies year to year more than a flat average rate.
Does inflation affect all prices equally? +
No. The CPI is a weighted basket average across categories like housing, food, energy, and healthcare. Some categories like education and medical care have historically outpaced average CPI, while electronics have often gotten cheaper. This calculator uses a single blended rate for simplicity.