Inflation Calculator
Calculate the effect of inflation on money over time. See how much your money will be worth in the future or what a past amount is worth today.
How to Use This Calculator
- Enter the Initial Amount you want to adjust for inflation.
- Set the Start Year and End Year for the time period.
- Enter the Annual Inflation Rate as a percentage.
- Click Calculate to see the inflated future value, purchasing power loss, and cumulative inflation.
Formula
Where FV = future value (inflated price), PV = present value (initial amount), r = annual inflation rate (decimal), and n = number of years. The purchasing power loss is calculated as 1 − (PV / FV) × 100%.
Examples
Frequently Asked Questions
What is the average inflation rate?
The long-term average inflation rate in the United States is approximately 3–3.5% per year, as measured by the Consumer Price Index (CPI). However, inflation varies significantly over time. It was below 2% for most of the 2010s, surged above 8% in 2022, and has since moderated.
How does inflation affect savings?
Inflation erodes the purchasing power of money over time. If your savings earn less interest than the inflation rate, you are effectively losing money in real terms. For example, $100,000 in a savings account earning 1% with 3% inflation loses about 2% in real purchasing power each year.
What is the difference between CPI and PPI?
The Consumer Price Index (CPI) measures price changes from the perspective of the consumer, tracking a basket of everyday goods and services. The Producer Price Index (PPI) measures price changes from the perspective of producers and wholesalers. CPI is more commonly used to measure inflation affecting households.