Inflation Calculator
See how inflation erodes purchasing power over time. Calculate what money was worth in the past or what it will be worth in the future.
How to Use This Calculator
Enter the dollar amount you want to adjust for inflation. Choose whether you want to see what that amount was worth in the past (past purchasing power) or what it will be worth in the future (future purchasing power). Enter the target year — for past values, choose a year earlier than today; for future values, choose a later year. Adjust the annual inflation rate if desired. The historical average US inflation rate is about 3% per year. The calculator shows the adjusted amount and a complete year-by-year breakdown.
How Inflation Works
Inflation is the gradual increase in the price of goods and services over time. As inflation rises, each unit of currency buys fewer goods and services — reducing purchasing power. Central banks target around 2% annual inflation in most developed economies. At 3% annual inflation, $100 today will have the purchasing power of about $74 in 10 years. Inflation affects savings, retirement planning, and long-term investment decisions. Understanding inflation is essential for making informed financial plans that maintain their value over time.