Inflation Calculator
Calculate the effect of inflation on purchasing power. Find how much money from any past year is worth in today's dollars using CPI data.
US average: ~3.1% · Fed target: 2%
Future Equivalent Value
$135,702.13
needed in 10 years to match today's $100,000.00
Purchasing Power Lost
$35,702.13
About the Inflation Calculator
Inflation silently erodes the purchasing power of money over time. Our inflation calculator shows you the real value of money across any time period, using historical CPI (Consumer Price Index) data from the US Bureau of Labor Statistics. Understanding inflation is essential for retirement planning, salary negotiation, investment return evaluation, and understanding the true cost of waiting to make important financial decisions.
Formula
Adjusted Amount = Original Amount × (1 + Inflation Rate)^Years
How It Works
The inflation adjustment formula is: Adjusted Value = Original Value × (CPI in Target Year ÷ CPI in Base Year). The US long-term average inflation rate is approximately 3.1% per year. At this rate, $100,000 today will have the purchasing power of only $74,000 in 10 years. This is why investments must beat inflation to generate real wealth — a savings account earning 2% during 3% inflation is losing real value.
Tips & Best Practices
- ✓At 3% inflation, prices double every 24 years (the Rule of 72: 72 ÷ 3 = 24).
- ✓The Federal Reserve targets 2% annual inflation as the sweet spot for economic stability.
- ✓TIPS (Treasury Inflation-Protected Securities) guarantee returns above inflation.
- ✓Real estate has historically matched or slightly beaten inflation over long periods.
- ✓Salary raises below the inflation rate are effectively pay cuts in real terms.
Who Uses This Calculator
Retirees adjusting their Social Security estimates, investors evaluating real returns versus nominal returns, HR professionals benchmarking wage growth, and economists modeling future purchasing power all rely on inflation calculations.
Optimised for: USA · Canada · UK · Australia · Europe · Calculations run in your browser · No data stored
Frequently Asked Questions
What is the average US inflation rate?
The US long-term average inflation rate is approximately 3.2% per year, though it varies significantly year to year.