Inflation Calculator
Calculate purchasing power over time using compound inflation rates.
About This Tool
Calculates the effect of inflation on purchasing power using compound interest math. The default 3% annual rate is a typical long-run US CPI average — adjust to match actual historical or projected rates.
Four results are shown: the inflation-adjusted value of your start-year amount in the end year, the reverse purchasing power, the cumulative inflation rate over the period, and the percentage of purchasing power remaining. Useful for financial planning and historical price comparisons.
How to Use
- Enter the base amount you want to analyze.
- Select the start year and end year.
- Enter the annual inflation rate (default 3%).
- Read the result cards for equivalent value, reverse worth, cumulative inflation, and purchasing power remaining.
Use Cases
Used for salary negotiations to understand real wage changes. Compare historical prices to today's values, or estimate how much you'll need for retirement. Useful for economics education, investment analysis, and understanding the long-term cost of living changes.
FAQ
- What rate should I use? — US average CPI is ~3% long-term. Recent years have seen 4–8%. For historical US data, look up Bureau of Labor Statistics CPI tables.
- Why are there four result cards? — "Equivalent in [year]" is the inflation-adjusted future value. The second card shows the reverse: what the end-year amount would be worth in the start year. Cumulative inflation and purchasing power remaining show the overall inflation effect.
- Can I calculate deflation (negative inflation)? — Yes. Enter a negative value for the inflation rate to calculate deflationary scenarios.