Inflation Calculator
Free Inflation Calculator: See a currency's buying power and value change over time using historical CPI data. See how inflation affects your money.
Inputs
Enter the required values to calculate.
Result
The calculated result will appear here.
More Information
Understanding the Inflation Calculator
Inflation is a key economic concept that describes the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling. This calculator helps you quantify that effect and understand its impact on your financial planning.
How to Use This Calculator
The calculator uses historical Consumer Price Index (CPI) data to compare the buying power of a dollar between two different years.
- Amount: The dollar amount you want to compare.
- Start Year: The year the initial amount is from.
- End Year: The year you want to compare its value to.
Why This Matters
Understanding inflation is crucial for long-term financial goals. An investment must have a return rate higher than the inflation rate to generate real growth in purchasing power. This is a core concept used in our Retirement Calculator to show your final balance in "today's dollars".