Inflation Calculator
See how inflation erodes purchasing power and calculate future or past values of money adjusted for inflation
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Understand the Impact of Inflation on Your Money
Inflation silently erodes your purchasing power over time. Our inflation calculator shows exactly how much your money is worth today compared to the past, or how much you'll need in the future to maintain the same buying power. Essential for retirement planning, salary negotiations, and understanding historical prices.
What Is Inflation?
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power over time. If inflation is 3%, something that costs $100 today will cost $103 next year. Over decades, this compound effect significantly impacts the real value of money, savings, and investments.
Future Value Formula
FV = PV × (1 + r)^nHow to Calculate Inflation Impact
Common Use Cases
Retirement Planning
Calculate how much you'll actually need in retirement dollars to maintain your current lifestyle.
Salary Negotiations
Compare job offers across different time periods or understand if your raise keeps up with inflation.
Historical Comparisons
See what prices from the past would be in today's dollars, or what today's prices mean in historical terms.
Investment Analysis
Calculate real returns on investments by factoring in inflation's impact on purchasing power.
Frequently Asked Questions
The US historical average is about 3% annually. Recent years (2021-2023) saw higher inflation (4-8%). For conservative long-term planning, 3% is reasonable. For current projections, check the latest CPI data from the Bureau of Labor Statistics.