Inflation Calculator
See how purchasing power changes with inflation. Enter any amount and time period.
Understanding Inflation
Inflation compounds just like interest — meaning its effect grows exponentially over time. At 3% inflation, prices double every 24 years (the Rule of 72: 72 ÷ 3 = 24).
Historical US Inflation Milestones
| Year | What $100 is worth today (2026) |
|---|---|
| 1950 | ~$1,300 |
| 1980 | ~$400 |
| 2000 | ~$180 |
| 2010 | ~$145 |
| 2020 | ~$115 |
How Inflation Erodes Money
Inflation is the gradual rise in prices that reduces what each unit of currency can buy. If prices rise 3% a year, something that costs $100 today costs $103 next year — and your $100 buys less. Over decades the effect compounds: at 3% inflation, prices roughly double every 24 years.
Nominal vs Real Value
This calculator converts an amount from one year's buying power to another's using an average inflation rate. It's how you compare a 1990 salary with today's, or check whether a raise actually keeps pace with the cost of living — a 2% raise during 4% inflation is a real pay cut.
Why It Matters for Saving
Money sitting in a zero-interest account loses value every year to inflation, which is why long-term savings are usually invested. See how growth can outrun inflation with the compound interest calculator.