Inflation Calculator
Calculate the impact of inflation on purchasing power over time.
Updated April 2026Inflation Details
US historical average: ~3.2% (1913–2025). Core CPI (ex food/energy): ~2.5%.
Purchasing Power
Inflation Summary
Total inflation over 26 years: 126.82%
$1,000.00 in 2000 has the same purchasing power as $2,268.15 in 2026 at 3.2% average inflation.
How It Works
Enter the Amount
Input any dollar amount you want to adjust for inflation.
Choose Years
Select a start year and end year to compare purchasing power.
See the Impact
Find the equivalent value and total purchasing power loss over time.
How Inflation Erodes Purchasing Power
Inflation is the rate at which prices rise over time. Even a modest 3% annual rate means prices double roughly every 24 years (Rule of 72). The formula is straightforward: Equivalent Value = Original Amount × (1 + rate)^years. Understanding inflation helps you plan for retirement, negotiate raises, and evaluate investment returns in real terms.
US Historical Average
Since 1913, US CPI inflation has averaged ~3.2%. The 2021–2023 spike peaked at 9.1% in June 2022. Core CPI (ex food/energy) averages ~2.5%.
Real vs Nominal Returns
A 7% investment return with 3% inflation = 4% real return. When evaluating savings or investment performance, always subtract inflation to see true purchasing power gains.
Inflation-Proof Assets
I Bonds (inflation-linked), TIPS, real estate, equities, and commodities historically outpace inflation over the long run. Cash and fixed-rate bonds lose real value.
Related guides
Compound Interest Explained
How compounding works, daily vs monthly vs annual, and $10K growth examples.
The Rule of 72: How Long to Double Your Money
Use 72 ÷ rate to estimate doubling time — with examples at 4–10%.
Cost of Living by State: Most & Least Expensive
Housing cost index, how taxes interact with COL, and "true" salary after both.
Disclaimer: For informational purposes only. Not tax, legal, or financial advice.