Inflation quietly rewrites the meaning of a dollar every year. What cost $1 in 2000 costs roughly $1.75 today — the money didn't change, its purchasing power did. This free inflation calculator translates any amount across any two years, so you can compare salaries, house prices, or savings across decades on an apples-to-apples basis.
The math is simple compounding in reverse or forward. To find what an amount from the past is worth today, the calculator grows it by the average inflation rate for each year in between: future value = amount × (1 + r)years. Point the years into the future instead, and the same formula shows how much purchasing power today's money will lose. Either way, the real story is the percentage: at 3% annual inflation, prices double in roughly 24 years (the "rule of 72": 72 ÷ 3 = 24).
Which rate should you use? The Federal Reserve targets 2% long-run inflation, and the US average since 1913 is about 3.1%. If you're modelling a specific era — the calm 2010s (~1.8%) versus the hot 2021–2023 stretch — enter that era's actual average for a truer picture. The default 2.5% is a reasonable middle ground for rough estimates.
How to use the Inflation Calculator
- Enter an amount in dollars — a salary, a house price, a savings balance, anything.
- Set the average annual inflation rate, e.g. 2.5 (use 2–3% for general estimates).
- Pick the start and end years — backwards for "what was it worth," forwards for "what will it be worth."
- Click Calculate to see the inflation-adjusted equivalent, the cumulative price increase, and how much purchasing power was gained or lost.
Tips for thinking in real dollars
- Always compare salaries across years in inflation-adjusted terms — a "raise" that trails inflation is a pay cut.
- Cash sitting at 0% return loses about a quarter of its buying power every 10 years at 2.5% inflation.
- Use the year-by-year view below the result to see how compounding quietly accelerates over long periods.
Why inflation matters for savers and investors
Inflation is the hurdle every investment must clear: if your savings earn 2% while prices rise 3%, your real return is −1% — you end up able to buy less than you started with. That is why the payoff on bonds, CDs, and savings accounts is judged after inflation, and why long-term investors lean on assets like stocks and real estate that have historically outpaced it. Run the numbers here, then check our compound interest calculator to see what return you'd need to stay ahead.
Frequently asked questions
How do you calculate inflation-adjusted value?
Multiply the starting amount by (1 + r) raised to the number of years, where r is the average annual inflation rate. For example, $100 in 2000 at 2.5% average inflation has the purchasing power of about $188 in 2026.
What inflation rate should I use?
The US long-run average from 1913 to today is about 3%. The Federal Reserve targets 2% inflation. Use 2–3% for general estimates, or enter the actual average CPI inflation for the specific years you care about.
What does "purchasing power" mean?
Purchasing power is how much stuff a unit of money can buy. When prices rise 3% in a year, a dollar loses roughly 3% of its purchasing power — next year it buys only about $0.97 worth of what it bought before.
Is this calculator accurate for real history?
It is an estimate based on the single average rate you enter. Real inflation varies year to year (the US saw 8–9% in 2022 and near 0% in some years), so for an exact historical comparison, look up the CPI index for each year. This tool is best for quick estimates and "what if" scenarios.