Inflation Calculator

Calculate future purchasing power loss using custom projected inflation rates, or look up historical US dollar purchasing power with official CPI data.

Starting Dollar Amount

Projection Period (Years)

Years

Estimated Annual Inflation Rate (%)

Starting Year

Target Year

3.20% Avg Annual Inflation 15 Years Horizon

Equivalent Future Buying Power

$1,603.97

Needed to match buying power of $1,000

Cumulative Price Increase

+60.4%

Purchasing power erosion: 37.7%

Original Value

$1,000

Annualized Rate

3.20%

Value Erosion

-37.7%

Future Equivalent

$1,604

Purchasing Power Erosion Trajectory

Future basket cost vs. real purchasing power of today's dollar

Future Cost

Purchasing Power

Understanding Inflation & Purchasing Power

Inflation is the gradual general increase in prices and fall in the purchasing value of money over time. When prices inflate, every dollar buys a smaller percentage of a good or service. The benchmark metric for US consumer inflation is the Consumer Price Index for All Urban Consumers (CPI-U), published monthly by the US Bureau of Labor Statistics (BLS).

The Rule of 72 for Inflation

A quick mental math rule to determine how many years it will take for prices to double at a given inflation rate:

Years to Double = 72 ÷ Annual Inflation Rate (%)

For example, at a 3% inflation rate, consumer goods double in price in approximately 24 years (72 / 3 = 24).

Understanding your calculation

Method, example and limitations

How the calculation works

An inflation adjustment scales a price or amount by a price-index ratio, or by an assumed compounded annual inflation rate in projection mode.

Example to check

At an assumed constant 3% inflation rate, an item costing 100 becomes 103 after one year and 106.09 after two years.

Before using the result

An assumed rate is not an observed historical index. Country, index series, time period and personal spending patterns affect purchasing-power comparisons.

Calculation methodology · Report a result that needs review