📈 Inflation Calculator
Calculate how inflation erodes purchasing power over time, or find the inflation-adjusted value of money between any two years.
Inflation Adjustment
$
Inflation-Adjusted Value
$0
Purchasing Power Change
0%
Cumulative Inflation
0%
Avg Annual Rate
0%
Value Lost to Inflation
$0
What is Inflation?
Inflation is the rate at which the general level of prices rises over time, reducing purchasing power. The US Federal Reserve targets 2% annual inflation. The Consumer Price Index (CPI) is the most common measure.
Historical US Inflation Rates
| Decade | Avg Annual CPI | $100 became |
|---|---|---|
| 1970s | 7.1% | $50 in real terms |
| 1980s | 5.6% | $58 in real terms |
| 1990s | 3.0% | $74 in real terms |
| 2000s | 2.6% | $77 in real terms |
| 2010s | 1.8% | $83 in real terms |
| 2020–2024 | ~4.5% | ~$83 in real terms |
How does inflation affect savings? +
If your savings earn less than the inflation rate, your purchasing power shrinks even as your dollar balance grows. This is why keeping large amounts in low-interest accounts during high inflation is costly. In 2022–2023, many savings accounts paid 0.5% while inflation ran at 6–8%, causing a real loss of 5–7% annually.
What's the difference between CPI and PCE? +
CPI (Consumer Price Index) measures what urban consumers pay for a fixed basket of goods. PCE (Personal Consumption Expenditures) is the Federal Reserve's preferred measure — it adjusts for consumer substitution behavior and typically runs slightly lower than CPI. The Fed targets 2% PCE inflation.