💹 Inflation Calculator

Calculate the real value of money over time using inflation rate. See purchasing power changes.

💹 Inflation Calculator

What will today's money be worth in the future?

What would past money be worth today?

Calculate buying power erosion

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Related Guide
How Inflation Affects Your Money Over Time
Why purchasing power erodes, and how to calculate the real value of money.
Read Article →

What is the Inflation Calculator?

The Inflation Calculator shows how prices and purchasing power change over time. It has three modes: Future Value estimates what a sum today will need to grow to just to keep pace with inflation; Past Value shows what an older amount of money is equivalent to today; and Buying Power projects how much a monthly income's real value erodes over a number of years at a given inflation rate.

How to Use It

Pick the tab that matches your question. For Future Value, enter an amount, an annual inflation rate, and a number of years to see the future value needed and how much purchasing power is lost. Past Value works the same way in reverse for money from years ago. Buying Power takes a monthly income and shows its real value and percentage remaining after inflation over time.

When to Use It

Use it when negotiating a raise or salary to check whether it actually keeps pace with inflation, when comparing historical prices or wages to today's dollars, or when planning long-term savings and retirement goals that need to account for eroding purchasing power.

Who Benefits

Anyone budgeting for the future, comparing salary offers, or researching historical prices for a report or personal finance decision. It's also useful context for savers deciding between low-yield savings accounts and inflation-beating investments like stocks or real estate.

Frequently Asked Questions

Inflation is the rate at which the general price level of goods and services rises over time, reducing purchasing power. A 3% inflation rate means $100 today buys what $97 bought a year ago. The US Federal Reserve targets 2% annual inflation.
The most common measure is the CPI (Consumer Price Index), which tracks prices of a 'basket' of goods and services: food, housing, transportation, medical care, etc. The PCE (Personal Consumption Expenditures) price index is the Fed's preferred measure.
Inflation erodes the real value of cash savings. Money in a savings account earning 1% while inflation runs at 3% effectively loses 2% of purchasing power per year. This is why investing in assets that outpace inflation (stocks, real estate, TIPS) is important for long-term wealth preservation.