Inflation is the rate at which prices rise over time. When inflation is 3%, a dollar buys about 3% less each year. Your money loses purchasing power—you need more dollars to buy the same goods and services.

What's a typical inflation rate?

Historically, U.S. inflation has averaged around 2–3% per year. It can spike (e.g., during supply shocks) or stay low. Use 3% as a rough default for long-term planning.

What does 'future equivalent' mean?

It's the amount you'd need in the future to have the same purchasing power as your amount today. If $10,000 today buys X, the future equivalent is how many dollars you'd need later to still buy X.

What does 'past equivalent' mean?

It's the amount from the past that had the same purchasing power as your amount today. It shows how much less you would have needed years ago to buy what your money buys now.

How does inflation affect savings?

Cash in a low-interest account loses value to inflation. If inflation is 3% and your savings earn 1%, you're effectively losing 2% per year in purchasing power. That's why investing often aims to beat inflation.

What is the 'Compare to a past year' section?

It uses actual US Consumer Price Index (CPI) data from the Bureau of Labor Statistics to convert amounts between years. For example, $10,000 in 1975 had the same purchasing power as about $58,000 today. This uses real historical inflation, not a fixed rate.

Inflation Calculator

Inflation erodes purchasing power over time—a dollar today buys less tomorrow. This calculator shows how much you'd need in the future to maintain today's buying power, or what a past amount would be worth today. Enter any dollar amount, inflation rate, and time period to see the impact. Use it to plan for retirement, evaluate savings, or understand why prices rise. Below we explain the formula, work through an example, and note limitations.

Presets:

Results

In 10 years you'd need$13,439.16

10 years ago, that would've been$7,440.94

Inflation erodes your amount by$3,439.16

Inflation multiplier1.34×

What this means

At 3% inflation, $10,000.00 today will only buy what $13,439.16 buys in 10 years. Your money loses value over time—that's why a dollar doesn't go as far as it used to. Investing aims to grow faster than inflation so your purchasing power doesn't shrink.

Compare to a past year

Use actual US inflation data (CPI) to see what an amount from the past would be worth today.

Amount

From year

$10,000.00 in 1975 = $60,575.99 today(506% total inflation)

Purchasing power over time

Formula & examples

How inflation works

Inflation means prices go up. When inflation is 3%, something that costs $100 today will cost about $103 next year. Your money buys less over time.

The inflation formula

Future $ = Today $ × (1 + r)^t

Where r = annual inflation rate (e.g., 0.03 for 3%) and t = years. For "past equivalent": Today $ ÷ (1 + r)^t.

Example calculation

$10,000 at 3% inflation for 10 years:

Variable	Value
Amount (today)	$10,000
Rate (r)	0.03
Years (t)	10
Future equivalent	10,000 × (1.03)^10 ≈ $13,439
Past equivalent	10,000 ÷ (1.03)^10 ≈ $7,441

Historical comparison (CPI data)

The "Compare to a past year" section uses actual US CPI-U data from the Bureau of Labor Statistics. The formula is: Today $ = Past $ × (CPI_today ÷ CPI_past). This reflects real inflation over that period, not a hypothetical rate.

Limitations

Assumes a constant inflation rate; real inflation fluctuates.
Different goods and services inflate at different rates.
Use for planning and awareness, not precise predictions.

Frequently asked questions

Understanding Inflation and Purchasing Power

Why Use an Inflation Calculator

An inflation calculator shows how the purchasing power of money changes over time. A dollar inflation calculator or us inflation calculator answers: what would $100 today have bought 20 years ago, or how much will you need in 20 years to match today's buying power? An inflation calculator usd or us dollar inflation calculator is useful for planning—retirement, savings goals, or salary negotiations. Calculator and money questions often lead people to inflation tools: understanding how inflation erodes value helps you make better financial decisions.

CPI and the Bureau of Labor Statistics

The Consumer Price Index (CPI) is the standard measure of inflation in the US. The Bureau of Labor Statistics publishes CPI data monthly. A bls inflation calculator or bureau of labor statistics inflation calculator uses this official data to convert amounts between years. A cpi inflation calculator or consumer price index inflation calculator does the same—CPI tracks the cost of a basket of goods and services over time. Our calculator's "Compare to a past year" feature uses BLS CPI data for historical accuracy. A bls cpi inflation calculator or inflation rate cpi calculator applies the same methodology.

US Dollar and Currency Inflation

A us currency inflation calculator or american dollar inflation calculator focuses on the purchasing power of the US dollar. Inflation affects all money—a money inflation calculator us shows how much your dollars lose value over time. An inflation converter us converts a past amount to today's equivalent, or today's amount to a future equivalent. A cpi calculator or consumer index calculator often refers to the same concept: using CPI data to measure inflation's impact. A consumer inflation calculator helps you see how prices have changed for typical household spending.

How Inflation Affects Your Money

When inflation runs at 3%, a dollar buys about 3% less each year. Over a decade, that compounds—$10,000 today might need $13,400 in 10 years to buy the same things. An inflation calculator makes this concrete. Use it to plan retirement withdrawals, evaluate whether your savings rate is sufficient, or understand why historical prices seem so low. Cash in a low-yield account loses ground to inflation; investments that beat inflation help preserve purchasing power.

Limitations to Consider

Inflation calculators use either a fixed rate (for forward/backward projections) or historical CPI (for past-year comparisons). CPI is an average—your personal inflation may differ based on what you buy. Regional and category-specific inflation varies. Use an inflation calculator as a planning tool, not a precise predictor. For official historical data, the Bureau of Labor Statistics website offers detailed CPI tables.