Inflation Calculator
See how inflation erodes purchasing power over time. Calculate what any amount is worth in today’s dollars — or what it will be worth in future years.
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Calculate the real value of money across time using historical or custom inflation rates.
📜 Historical Inflation Reference
US CPI cumulative inflation — how much prices have risen since each decade (approximate).
What Is an Inflation Calculator?
This free inflation calculator shows you what any amount of money is worth across time — accounting for the erosion of purchasing power caused by inflation. You can use this inflation calculator two ways: find out what a historical amount is worth in today’s dollars (“what was $10,000 in 1990 worth today?”), or project what today’s money will be worth in the future (“what will $50,000 be worth in 2040?”). Both calculations use the same compound inflation formula applied in different directions.
In fact, inflation is one of the most misunderstood forces in personal finance. A salary that stays flat while inflation runs at 3% is actually a pay cut every year. This inflation calculator makes that invisible erosion of purchasing power visible and quantifiable.
How Does This Inflation Calculator Work?
Present Value = Future Value ÷ (1 + Inflation Rate)^Years
Purchasing Power Lost = (1 − PV/FV) × 100
Real Value = Nominal Value ÷ (1 + Inflation Rate)^Years
For example, $10,000 in 2000 at 3% average annual inflation is worth $10,000 × (1.03)^25 = $20,938 in 2025. Conversely, $10,000 today will have the purchasing power of only $7,441 in 2025 dollars after 10 years at 3% inflation.
What Inflation Rate Should I Use in This Inflation Calculator?
- United States: The long-run average US CPI inflation rate is approximately 3% per year since 1913. The 2022 spike reached 9.1%. For future projections, most economists and the Federal Reserve target 2%.
- United Kingdom: Long-run UK CPI averages approximately 2.5–3%. The Bank of England targets 2%.
- Australia: Long-run RBA average is approximately 2.5–3%. The RBA targets a 2–3% band.
- Eurozone: ECB targets 2%. Long-run average is approximately 2%.
- India: Historical average is higher at approximately 5–6%. The RBI targets 4%.
Why Does Inflation Matter for Retirement Planning?
This is where the inflation calculator becomes most powerful. $1,000,000 in retirement savings sounds like a lot — but at 3% inflation, it has the purchasing power of only $412,000 in today’s dollars after 30 years. A pension of $50,000/year in 2025 has the purchasing power of only $20,600/year in 2055 at 3% inflation. This inflation calculator makes those projections concrete so you can plan realistically.
Choosing an Inflation Assumption
No single inflation rate applies to every household or country. Use a published central-bank or government estimate for a planning baseline, then test a higher and lower scenario because food, housing, energy, and healthcare can move differently from the headline index. The calculator compounds the rate over time, so a small change in the assumed percentage can materially change the future price. Treat the result as purchasing-power planning, not a prediction of the exact price of one product.
Inflation Calculator — Frequently Asked Questions
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