Inflation Calculator

Q: Is inflation always bad?

Moderate inflation (around 2%) is considered healthy. It encourages spending, makes debt easier to repay, and gives the Fed room to cut rates in recessions. Deflation is often worse — it can cause delayed purchases and economic contraction. High inflation (above 5-6%) erodes savings and creates uncertainty.

Q: How do I protect my savings from inflation?

Strategies include investing in stocks (historically ~7% real returns), TIPS or I Bonds, real estate, negotiating raises above inflation, and using tax-advantaged accounts (401k, IRA, HSA). A savings account at 0.5% APY loses money to inflation every year.

Calculate inflation using official CPI data from 1913 to 2025. See what your money was worth, compare buying power with real prices, and project how inflation erodes your savings.

Calculate the effect of inflation on any dollar amount between 1913 and 2025

Amount

Start year

End year

Direction

Forward: $100 in 2000 = $X in 2025. Reverse: $100 in 2025 = $X in 2000.

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How to Use This Calculator

Inflation Calculator tab

The default tab. Enter any dollar amount, pick a start year (1913–2025) and an end year. The calculator shows the equivalent amount adjusted for inflation, cumulative inflation percentage, and average annual rate. Use "More options" to toggle reverse mode: see what today's dollars were worth in an earlier year.

Buying Power tab

Enter an amount and a year to see what it's worth in 2025 dollars. For benchmark years (1970, 1980, 1990, 2000, 2010, 2020, 2025), the calculator shows actual prices for everyday items — gas, eggs, milk, homes, movie tickets, minimum wage, new cars, and college tuition. For other years, it shows CPI-adjusted estimates.

Future Value tab

Project how inflation erodes your money over time. Enter an amount, an assumed inflation rate (default 3%), and years ahead. Toggle between two questions: "How much purchasing power will I lose?" and "How much will I need to maintain buying power?" Essential for retirement planning.

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The Formula

Inflation is measured using the Consumer Price Index (CPI-U), published by the Bureau of Labor Statistics:

Adjusted Price = Original Price × (CPI_{end year} / CPI_{start year})

Cumulative Inflation = (CPI_end − CPI_start) / CPI_start × 100%

Average Annual Rate = ((CPI_end / CPI_start)^1/years − 1) × 100%

Future projection:
Purchasing Power = Amount / (1 + rate)^years
Amount Needed = Amount × (1 + rate)^years

The CPI-U tracks the average change in prices paid by urban consumers for a basket of goods and services. The base period is 1982–84 = 100. A CPI of 321.9 in 2025 means that what cost $100 in 1982–84 costs $321.90 in 2025.

This calculator uses annual average CPI values (not monthly), which smooths out seasonal fluctuations and gives a more representative picture of each year's price level.

Example

David — high school teacher, 55, Minneapolis MN

David started teaching in 1995 earning $45,000. After 30 years of raises, he now earns $68,000. Has inflation outpaced his salary growth?

Inflation Calculator tab

Starting salary (1995)$45,000

CPI-U 1995152.4

CPI-U 2025321.9

Inflation-adjusted equivalent$95,075

Cumulative inflation+111.3%

Average annual rate2.52%/yr

David's $45K in 1995 had the same buying power as $95,075 today. At $68K, inflation has outpaced his raises by $27K — he's effectively taken a 28% pay cut in real terms.

Future Value tab

Current salary$68,000

At 3% inflation, 10 years$50,590 purchasing power

Salary needed in 10 years$91,390

If David doesn't get raises above inflation, his $68K will feel like $50,590 in 10 years. He needs $91K just to maintain his current standard of living.

FAQ

What is the CPI and how is it calculated? ▼

The Consumer Price Index for All Urban Consumers (CPI-U) measures the average change in prices paid by urban consumers for a market basket of goods and services. The BLS collects about 94,000 prices from 23,000 retail and service establishments monthly. The basket includes food, housing, apparel, transportation, medical care, recreation, education, and communication. The base period is 1982–84 = 100.

What is the current US inflation rate? ▼

As of February 2026, the year-over-year CPI inflation rate is 2.4% (BLS release March 11, 2026). This means prices are 2.4% higher than one year ago. The Federal Reserve targets 2% annual inflation. After peaking at 9.1% in June 2022, inflation has returned close to the target range.

What causes inflation? ▼

Inflation has multiple causes: demand-pull (too much money chasing too few goods), cost-push (rising production costs passed to consumers), monetary policy (central bank money supply decisions), supply chain disruptions, and expectations (businesses and workers anticipating price increases). The 2021–2023 inflation spike was driven by pandemic-era stimulus spending, supply chain disruptions, and the energy shock from the Russia-Ukraine conflict.

Is inflation always bad? ▼

Moderate inflation (around 2%) is considered healthy for an economy. It encourages spending and investment rather than hoarding cash, makes debt easier to repay over time, and gives the Federal Reserve room to cut interest rates during recessions. Deflation (falling prices) is often worse — it can lead to delayed purchases, falling wages, and economic contraction, as seen in the Great Depression. High inflation (above 5–6%) is harmful because it erodes savings, hurts fixed-income earners, and creates economic uncertainty.

How do I protect my savings from inflation? ▼

Strategies to outpace inflation include: investing in stocks (historically ~7% real returns), holding Treasury Inflation-Protected Securities (TIPS) or I Bonds, investing in real estate, keeping only emergency funds in cash, negotiating salary increases above the inflation rate, and using tax-advantaged accounts (401k, IRA, HSA) to maximize after-tax returns. A standard savings account at 0.5% APY loses money to inflation every year.

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