Inflation Calculator

Amount — the starting sum of money.
Inflation rate — the assumed average annual CPI increase.
Years — the time span over which inflation compounds.
Direction — project money forward (future worth) or back (today's equivalent of a past amount).

Frequently Asked Questions

What is inflation?

Inflation is the rate at which the general level of prices for goods and services rises, reducing purchasing power over time.

How is inflation measured?

Most commonly with the Consumer Price Index (CPI), which tracks the price of a basket of goods and services over time.

What is the historical average inflation rate?

In the US it has averaged about 2–3% per year over recent decades. The Federal Reserve targets 2%.

How does inflation affect my savings?

If your savings grow slower than inflation, their real value falls even though the number of dollars grows.

$1,000 today with 3% annual inflation:

In 10 years: $1,000 × 1.03^10 ≈ $1,343.92 — that is how much you would need to match today's purchasing power.
Purchasing power lost: about $344 in real terms.

How to Use This Calculator