Inflation Calculator
Discover how inflation impacts the purchasing power of your money over time with our easy-to-use U.S. inflation calculator. Compare what a dollar could buy in different years using official CPI data from the Bureau of Labor Statistics. Whether you're forecasting future dollar value, checking past dollar value, or performing inflation-adjusted comparisons between years, this inflation-adjusted calculator helps you understand real savings and spending power.
Recent Inflation Rates
Inflation Categories
Deflation: Negative inflation (prices decreasing)
Low: 0-2% annual inflation
Moderate: 2-5% annual inflation
High: 5-10% annual inflation
Hyperinflation: 50%+ monthly inflation
What is an Inflation Calculator?
An inflation calculator helps you understand how the purchasing power of money changes over time due to inflation. It shows you what a specific amount of money from one year would be worth in another year, adjusted for changes in the cost of living.
How to Use This Inflation Calculator
Follow these simple steps to calculate inflation-adjusted values:
- Enter an amount in dollars (e.g., $1,000)
- Select a start date (when the money was originally valued)
- Choose an end date (when you want to know the equivalent value)
- Click "Calculate Inflation" to see the results
Example Calculation
If you enter $1,000 for January 2000 and compare to January 2023, you'll see that $1,000 in 2000 has the same purchasing power as about $1,750 in 2023 - meaning prices have increased by about 75% over that 23-year period.
About the Consumer Price Index (CPI)
Our calculator uses the Consumer Price Index (CPI) data from the U.S. Bureau of Labor Statistics, which measures the average change over time in prices paid by urban consumers for a market basket of consumer goods and services. The CPI is the most widely used measure of inflation.
How Inflation is Calculated
Future Value = Initial Amount × (CPI at End Date ÷ CPI at Start Date)
Inflation Rate = ((CPI at End Date - CPI at Start Date) ÷ CPI at Start Date) × 100
Real-World Uses of an Inflation Calculator
This tool has many practical applications:
- Financial planning - Understanding how inflation affects your savings goals
- Salary comparisons - Seeing if wage increases keep up with inflation
- Historical analysis - Comparing prices from different eras
- Investment decisions - Evaluating real (inflation-adjusted) returns
- Contract adjustments - Incorporating inflation clauses in agreements
About This Tool
Our Inflation Calculator uses official Consumer Price Index (CPI) data from the U.S. Bureau of Labor Statistics to provide accurate inflation adjustments between any two months from 1913 to present. The calculations are based on the average CPI for all urban consumers in the U.S., which represents about 93% of the total population.
The tool automatically fetches the latest CPI data and caches it for 24 hours to ensure fast performance while maintaining accuracy. If the official data isn't available, it uses statistically generated estimates to provide approximate results.
Frequently Asked Questions
Historical Inflation Trends
| Period | Average Annual Inflation | Key Events |
|---|---|---|
| 1913-1920 | 10.5% | World War I |
| 1920-1940 | -1.0% | Great Depression |
| 1940-1950 | 5.6% | World War II |
| 1950-1970 | 2.3% | Post-war boom |
| 1970-1980 | 7.1% | Oil crisis |
| 2008-2009 | 0.1% | Financial crisis |
| 2021-2022 | 8.0% | Post-pandemic recovery |
Understanding Your Results
The results show the equivalent purchasing power of your money between two points in time. Remember that:
- These are estimates based on average price changes
- Your personal inflation rate may differ based on spending habits
- The calculator doesn't account for taxes or investment returns
- For precise financial planning, consult a qualified professional