About Inflation Calculator
Understand how inflation impacts your money over time. Our inflation calculator shows you what your money will be worth in the future, or what past amounts equal in today's dollars.
How It Works
The calculator uses the compound inflation formula: Adjusted Value = Initial Amount / (1 + rate)^years. This shows the real purchasing power of your money after accounting for inflation.
Features
- Calculate future or past purchasing power
- Customizable inflation rate
- Shows total inflation percentage and dollar loss
- Real-time calculation as you type
Free Inflation Calculator FAQ
What is the average inflation rate in the US?
The historical average inflation rate in the US is about 3% per year. However, it varies significantly by decade — from under 2% in the 2010s to over 7% in 2022.
How does inflation erode purchasing power?
If inflation is 3%, $100 today will have the purchasing power of about $74 in 10 years. Over 30 years, it drops to about $41. This is why investing is essential.
What is the Consumer Price Index (CPI)?
CPI measures the average change in prices paid by consumers for a basket of goods and services. It is the most widely used indicator of inflation.
Can inflation be negative?
Yes, deflation (negative inflation) occurs when prices fall. This happened during the Great Depression and briefly in 2009. Deflation can be harmful as it discourages spending.