📈 Inflation Calculator
Calculate how inflation affects purchasing power
How Inflation Calculation Works
Formula
Adjusted Value = Original Value × (CPI_end / CPI_start)
- 1Enter a dollar amount and a starting year.
- 2Select the ending year for comparison.
- 3The calculator looks up Consumer Price Index (CPI) values for both years.
- 4The ratio of CPI values determines the cumulative inflation rate.
- 5The original amount is adjusted to show equivalent purchasing power.
About Inflation Calculator
Calculate the effect of inflation on purchasing power over time. Compare the value of money between any two years using CPI data. See how much prices have changed.
Frequently Asked Questions
What is CPI?
The Consumer Price Index (CPI) measures the average change in prices paid by consumers for goods and services over time. It is the most widely used measure of inflation in the United States.
What is a good inflation rate?
Most central banks target about 2% annual inflation, considered healthy for economic growth. Higher rates erode purchasing power quickly. Deflation (negative inflation) can be even more harmful to the economy.
How does inflation affect savings?
If your savings earn less interest than the inflation rate, your money loses purchasing power over time. For example, at 3% inflation, $100 today buys only $97 worth of goods next year.