Inflation Calculator

Calculate the inflation-adjusted value of money over time

Last reviewed: July 2026How we build & verifyEstimate only. Verify important decisions with a qualified professional

Amount ($)

Inflation Rate (%)

Start Year

End Year

How it works

Translates an amount of money between two points in time using a compound inflation rate, so you can compare prices, salaries, or contract values on equal footing. Rising prices cut what a fixed sum can buy.

Formula

Future cost = Present amount × (1 + i)^n
Purchasing power = Amount / (1 + i)^n

Variables

iaverage annual inflation rate (decimal)
nnumber of years
Present amountthe sum in today money

Worked example

Inputs: A $50,000 annual cost, 20 years out, at 3.2% average inflation

(1.032)^20 ≈ 1.87756
50,000 × 1.87756 = 93,878.03
Reverse view: $100 in 20 years buys what $53.26 buys today

Result: $93,878 needed in 20 years to match $50,000 of buying power today

Notes

Headline CPI is a basket average. Healthcare, education, and childcare have run well above it for decades, so retirement and tuition planning should use category-specific rates.
A salary that rises 3% while inflation runs 4% is a 1% real pay cut, not a raise.
Long historical comparisons are shaky because the basket itself changes. A 1950 dollar bought goods that partly no longer exist.
Real return is approximately nominal return minus inflation; exactly it is (1 + nominal) / (1 + inflation) − 1, which matters once rates get into double digits.

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Frequently Asked Questions

Inflation compares a price index (commonly the Consumer Price Index, CPI) across two points in time. Our calculator uses historical CPI data from government sources.

It means you would need roughly $385 today to match the purchasing power of $100 in 1980, reflecting cumulative inflation of about 285% over that period.

CPI (Consumer Price Index) tracks a fixed basket of goods from household surveys. PCE (Personal Consumption Expenditures) adjusts as spending habits change. PCE is the Federal Reserve's preferred measure.

How it works

Formula

Future cost = Present amount × (1 + i)^n
Purchasing power = Amount / (1 + i)^n

Variables

iaverage annual inflation rate (decimal)
nnumber of years
Present amountthe sum in today money

Worked example

Inputs: A $50,000 annual cost, 20 years out, at 3.2% average inflation

(1.032)^20 ≈ 1.87756
50,000 × 1.87756 = 93,878.03
Reverse view: $100 in 20 years buys what $53.26 buys today

Result: $93,878 needed in 20 years to match $50,000 of buying power today

Notes

Headline CPI is a basket average. Healthcare, education, and childcare have run well above it for decades, so retirement and tuition planning should use category-specific rates.
A salary that rises 3% while inflation runs 4% is a 1% real pay cut, not a raise.
Long historical comparisons are shaky because the basket itself changes. A 1950 dollar bought goods that partly no longer exist.
Real return is approximately nominal return minus inflation; exactly it is (1 + nominal) / (1 + inflation) − 1, which matters once rates get into double digits.

Inflation Calculator

How it works

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Frequently Asked Questions

Inflation Calculator

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Frequently Asked Questions