Inflation Calculator
Calculate how inflation affects your purchasing power over time. See the future cost of goods or find what past money is worth today.
Future Cost (Equivalent Amount)
$141.06
Original Amount
$100.00
Adjusted Amount
$141.06
Total Inflation
41.1%
Multiplier
1.411×
📊 Year-by-Year Breakdown
| Year | Amount | Cumulative Change |
|---|---|---|
| 1 | $103.50 | +3.5% |
| 2 | $107.12 | +7.1% |
| 3 | $110.87 | +10.9% |
| 4 | $114.75 | +14.8% |
| 5 | $118.77 | +18.8% |
| 6 | $122.93 | +22.9% |
| 7 | $127.23 | +27.2% |
| 8 | $131.68 | +31.7% |
| 9 | $136.29 | +36.3% |
| 10 | $141.06 | +41.1% |
📈 Purchasing Power Visualization
In 10 years, you will need $141.06 to buy what $100.00 buys today.
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How the Inflation Calculator Works
This calculator uses the compound inflation formula to determine how prices change over time:
Future Cost Formula:
Future Price = Current Price × (1 + Inflation Rate)^Years
For example, with 3.5% annual inflation, something that costs $100 today will cost approximately $141 in 10 years.
Historical Inflation Context
- US Average (1913–2024): ~3.2% annually
- Recent High (2022): 8.0% — highest in 40 years
- Fed Target: 2% annual inflation is the Federal Reserve's goal
- Rule of 72: Divide 72 by the inflation rate to find how many years it takes for prices to double. At 3.5%, prices double every ~20.5 years.
❓ Frequently Asked Questions
What is inflation?
Inflation is the rate at which the general level of prices for goods and services rises over time, eroding purchasing power. When inflation rises, each dollar buys fewer goods.
How does inflation affect my savings?
If your savings earn less interest than the inflation rate, your money loses purchasing power over time. For example, $1,000 in a 1% savings account during 3.5% inflation loses ~2.5% of real value per year.
What's a good inflation rate?
Most economists consider 2% inflation healthy for a growing economy. The Federal Reserve targets 2% for the US. Rates above 5% can be problematic; above 10% is considered very high inflation.
What's the difference between CPI and inflation?
The Consumer Price Index (CPI) is one way to measure inflation. It tracks the price changes of a basket of consumer goods and services. Inflation is the broader concept of rising prices.