Calculate the Real Value of Money Over Time Using Official CPI Data
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An inflation calculator helps you understand how the purchasing power of money changes over time. It converts historical amounts into today's equivalent value by accounting for inflation.
Inflation is the rate at which the general level of prices for goods and services rises, reducing purchasing power. When inflation is 3%, something that costs $100 today will cost $103 next year.
Nominal value is the face value of money - the number printed on your paycheck or savings account.
Real value is what that money can actually buy after accounting for inflation.
This distinction matters for salaries, investments, savings, and retirement planning. A 3% raise means nothing if inflation was 4% that year - you actually lost purchasing power.
Over the past century, the average annual inflation rate in the United States has been approximately 3%. However, this has varied significantly across different decades.
Compare job offers across different time periods or adjust historical compensation data to current dollars. Understand whether a raise keeps pace with inflation or represents real income growth.
Calculate real returns on investments after accounting for inflation. A 7% return with 3% inflation is really a 4% real return. Investment managers use inflation data to set realistic portfolio return targets.
Determine how much your retirement savings will be worth in future purchasing power. Plan for the impact of inflation over multi-decade retirement periods.
All calculations are based on the Consumer Price Index (CPI-U) published by the U.S. Bureau of Labor Statistics. This is the same data used for Social Security adjustments and government inflation reporting.
Every calculation shows the exact CPI values used, so you can verify our results against government sources.
Basic inflation calculations are free. Calculate as many scenarios as you need with no registration required.
The Consumer Price Index measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. The Bureau of Labor Statistics calculates CPI based on approximately 80,000 price quotes collected monthly.
While CPI is the official measure of inflation, it has limitations:
We're building additional tools to help you understand inflation's impact: