Enter a dollar amount and a date range to see how purchasing power has changed over time — or project how much something will cost in the future at an assumed inflation rate. Useful for salary negotiations, retirement planning, and understanding how the real value of money changes.
Inflation is the rate at which prices rise over time, eroding the purchasing power of money. The most common measure is the Consumer Price Index (CPI), which tracks the average cost of a fixed basket of goods and services. To calculate the real value of a past dollar amount in today's terms: Adjusted Value = Original Amount × (CPI Today ÷ CPI Then).
For future projections, the compound growth formula applies: Future Value = Present Value × (1 + r)ⁿ, where r is the assumed annual inflation rate and n is the number of years. At 3% annual inflation, $50,000 today becomes roughly $67,196 in 10 years — meaning you'd need $67,196 in 2036 to buy what $50,000 buys today. The calculator runs this instantly for any amount and horizon.
Inflation affects different spending categories at different rates. Housing and healthcare have historically outpaced headline CPI; electronics and clothing often run below it. For personal financial planning, consider using a slightly higher rate than the published CPI if your spending is heavily weighted toward housing, healthcare, or education.
What inflation rate should I use for retirement planning?
The US Federal Reserve targets 2% annual inflation. Long-run historical average is closer to 3–3.5%. For conservative retirement planning, use 3% for general expenses and 5–6% for healthcare costs, which have consistently inflated faster than general CPI over the past two decades.
How does inflation affect my savings account?
If your savings account earns less than the inflation rate, your money loses real purchasing power even as the nominal balance grows. In 2026, high-yield savings accounts paying 4%+ APY are outpacing a 2–3% inflation environment — but that gap can reverse quickly when the Fed cuts rates.
What was the highest US inflation rate in recent history?
US CPI inflation peaked at 9.1% in June 2022 — the highest reading since 1981. It was driven by pandemic-era supply chain disruptions, stimulus spending, and an energy price spike following the Russia-Ukraine conflict. By 2024 it had fallen back toward the Fed's 2% target.
Is inflation the same as the cost of living?
Not exactly. Inflation measures the rate of price change across a broad basket of goods nationally. Cost of living reflects what it actually costs to live in a specific place. A city with high housing costs may have a high cost of living even in a low-inflation environment. Both matter for financial planning — inflation erodes purchasing power over time, while cost of living determines day-to-day expenses.