Inflation Calculator
Enter an amount and date range to see how inflation has changed purchasing power using historical US CPI data.
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Send Money NowWhat Is Inflation?
Inflation is the gradual increase in prices over time, which means each dollar buys less than it used to. The US Federal Reserve targets 2% annual inflation as a sign of a healthy economy. When inflation rises above that — as it did in 2022 (8%) — the purchasing power of savings and fixed incomes erodes quickly. From 2000 to 2025, cumulative US inflation exceeded 90%, meaning $1,000 in 2000 now requires over $1,900 to match the same purchasing power.
How This Calculator Works
This calculator applies actual annual US Consumer Price Index (CPI) rates year by year from 1990 to 2025. Enter a starting amount, a from-year, and a to-year — and it compounds the inflation rate each year to show the equivalent value. The chart shows purchasing power as a curve so you can see years with high inflation (like 2022) versus low-inflation periods (like 2015 at just 0.1%).
Why Inflation Matters for Investing
If your savings account earns 1% interest while inflation runs at 3%, you are losing 2% of real purchasing power every year. Over 25 years that compounds into a major loss. This is why financial advisors recommend keeping long-term savings in assets that historically outpace inflation — such as diversified stock index funds, which have returned roughly 7% per year after inflation over the past century.
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