Inflation Calculator
Calculate purchasing power and inflation impact on money over time. Use historical CPI data from 1950-2024 or custom inflation rates. See how much your money is really worth after inflation. 100% free and private.
Calculate what money from the past is worth today
Use actual CPI data from US Bureau of Labor Statistics (1950-2024)
Historical CPI Data
Use actual inflation data from 1950-2024 based on US Bureau of Labor Statistics CPI.
Purchasing Power
See exactly how inflation has eroded purchasing power and what your money is really worth.
Year-by-Year Breakdown
View detailed annual inflation rates and cumulative impact over the entire time period.
Frequently Asked Questions
What is inflation?
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. When inflation is 3% annually, something that costs $100 today would cost $103 next year. The Consumer Price Index (CPI) measures inflation by tracking price changes in a basket of consumer goods and services.
How is inflation calculated?
This calculator uses the US Consumer Price Index (CPI) published by the Bureau of Labor Statistics. Historical inflation is calculated by comparing CPI values between two years. The formula is: Adjusted Value = Original Amount times (CPI End Year / CPI Start Year). You can also use a custom annual inflation rate for projections.
What does purchasing power mean?
Purchasing power is the value of currency expressed in terms of the amount of goods or services one unit of money can buy. Inflation reduces purchasing power over time. For example, if inflation is 3% annually, your $100 today will only buy $97 worth of goods next year.
Why is the historical CPI data important?
Historical CPI data reflects actual inflation rates experienced in the economy, including periods of high inflation (1970s-1980s), deflation (2009), and low inflation. This provides accurate calculations for real-world scenarios like comparing salaries, understanding investment returns, or calculating historical purchasing power.
How can I use this calculator for salary comparison?
Enter a historical salary amount and the year it was earned. The calculator shows what that salary would be worth today after adjusting for inflation. This helps you understand if your current salary has kept pace with inflation or if you have gained or lost real purchasing power.
What is the difference between nominal and real values?
Nominal values are the actual dollar amounts without adjusting for inflation, while real values are adjusted for inflation to show true purchasing power. For example, a $50,000 salary in 1990 is the nominal value, but its real value in today's dollars is much higher due to cumulative inflation.