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Inflation Calculator

Use this inflation calculator to see how purchasing power changes over time. Enter an amount, an expected inflation rate, and a number of years to find out what your money will be worth in the future or what a past amount would equal in today's dollars.

The dollar amount you want to adjust for inflation. In future mode, this is your current amount. In past mode, this is the historical amount.

The average annual inflation rate to use for the calculation. The long-term US average is around 3%. Recent years have seen rates between 2% and 9%.

The number of years over which to calculate the inflation adjustment.

Choose whether to project future purchasing power or calculate the past equivalent of a current amount.

This calculator shows the impact of inflation on the value of money. In forward mode, it projects what a current dollar amount will buy in the future. In backward mode, it shows what a past amount would be worth today. Understanding inflation is essential for retirement planning, salary negotiations, and long-term budgeting.

How It Works

Inflation Adjustment Formula

Future: Adjusted = Amount / (1 + Rate/100)^Years; Past: Adjusted = Amount x (1 + Rate/100)^Years; Total Inflation = ((1 + Rate/100)^Years - 1) x 100

For future purchasing power, the amount is divided by the compounded inflation factor. For past equivalents, the amount is multiplied by the compounded inflation factor. Total inflation shows the cumulative percentage increase over the full period.

Inflation compounds annually, meaning each year's price increase builds on the previous year's higher prices.

In future mode, dividing by the inflation factor shows how much less your current money will buy.

In past mode, multiplying by the inflation factor shows what a historical amount would cost in today's dollars.

The total cumulative inflation percentage shows the overall price increase over the full time period.

At 3% annual inflation, prices roughly double every 24 years according to the Rule of 72.

Important Notes:

  • •This calculator assumes a constant annual inflation rate for the entire period. Actual inflation varies year to year.
  • •For historical calculations, using the actual Consumer Price Index data for the relevant years would be more accurate than assuming a fixed rate.
  • •The long-term US historical average inflation rate is approximately 3% per year, but individual years can vary dramatically.
  • •This calculator does not distinguish between different inflation measures such as CPI-U, CPI-W, or PCE.

Worked Example

A saver wants to know what $1,000 today will be worth in purchasing power after 10 years of 3% annual inflation.

Inputs:

  • amount:1,000
  • inflation Rate:3
  • years:10
  • calculation Mode:future

Result:

After 10 years of 3% annual inflation, $1,000 today would have the purchasing power of about $744.09 in today's dollars. The total cumulative inflation over 10 years is about 34.4%, meaning prices would be 34.4% higher. You would need approximately $1,343.92 in 10 years to buy what $1,000 buys today.

Who Is This Calculator For?

  • retirement planners
  • investors
  • salary negotiators
  • students learning about economics
  • anyone planning long-term finances

Frequently Asked Questions

The long-term US average is about 3% per year. The Federal Reserve targets 2% annual inflation. For conservative planning, using 3% is reasonable. For pessimistic scenarios, 4-5% may be appropriate. Check the Bureau of Labor Statistics for current rates.
Inflation means you will need significantly more money in retirement than you might expect. A retiree spending $50,000 per year today would need about $90,000 per year in 20 years at 3% inflation to maintain the same lifestyle. Retirement calculators should always factor in inflation.
Nominal returns are the raw percentage your investment gains. Real returns subtract the inflation rate to show your actual increase in purchasing power. If your investment earns 7% but inflation is 3%, your real return is approximately 4%.
No. Inflation rates differ by spending category. Housing, healthcare, and education have often inflated faster than the overall average, while technology costs have generally decreased. Your personal inflation rate depends on what you spend money on.
Inflation can be caused by increased demand for goods and services, rising production costs, supply chain disruptions, or expansion of the money supply. Central banks manage inflation primarily through interest rate adjustments.
The most common measure is the Consumer Price Index, or CPI, published monthly by the Bureau of Labor Statistics. It tracks the price of a basket of goods and services that represents typical consumer spending. The Personal Consumption Expenditures index is another widely used measure favored by the Federal Reserve.

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Last updated: April 11, 2026