Inflation Calculator
See how inflation changes the value of money over time
How to Use
- Enter the original amount
- Enter the start year and end year
- Enter the annual inflation rate (or use the default)
- View the inflation-adjusted value and purchasing power change
FAQ
How is inflation adjustment calculated?
The adjusted value is calculated using the formula: Adjusted Value = Original Amount × (1 + inflation rate)^years. This compounds the inflation rate over the time period.
What inflation rate should I use?
The long-term average inflation rate in the US is about 3% per year. Recent years have seen higher rates. Use 2-3% for conservative long-term estimates.
What does purchasing power mean?
Purchasing power refers to how much goods and services a given amount of money can buy. As inflation rises, the purchasing power of the same dollar amount decreases over time.
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This calculator provides estimates for informational purposes only. It does not constitute financial advice. Consult a qualified financial advisor for decisions affecting your finances.