Inflation Calculator
Understand how inflation erodes your purchasing power over time. Calculate what today's money will be worth in the future, or what a historical amount equals in today's dollars.
How We Calculate This
Uses compound inflation formula. Future Value = Present Value × (1 + inflation)^years. Present Value = Future Value ÷ (1 + inflation)^years. Purchasing power is the inverse of inflation adjustment.
Frequently Asked Questions
What is the average inflation rate?
US inflation has averaged about 3% since 1913. Recent years (2021-2023) saw higher inflation (6-9%). The Federal Reserve targets 2% annual inflation.
How does inflation affect my savings?
If your savings earn less than inflation, you lose purchasing power. At 3% inflation, $100,000 has the buying power of only $55,000 after 20 years.
How do I protect against inflation?
Invest in assets that historically beat inflation: stocks (7-10% real return), real estate, I-bonds, and TIPS. Avoid keeping large amounts in low-yield savings accounts.
What is the rule of 72 for inflation?
Divide 72 by the inflation rate to estimate when prices double. At 3% inflation, prices double every 24 years (72 ÷ 3 = 24).
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You might also find these calculators helpful: Compound Interest Calculator, and Retirement Calculator.