About the Inflation Calculator
Inflation Calculator helps estimate the key numbers involved in other decisions. It is designed for quick scenario comparison: enter a realistic set of values, calculate the result, then change one assumption at a time to see what has the greatest effect. Unlike a static table, the result responds to your inputs and keeps the calculation in your browser. Amounts are displayed in U.S. dollars for consistency, but the mathematical formulas can be used with another currency when every monetary input uses that same currency.
How to use this calculator
Enter values that match your situation and select Calculate result. Review the main result and its supporting figures, then change one input at a time to compare scenarios. Results are rounded for readability while the calculation retains additional precision internally.
Information you will need
- Amount
- Rate
- Years
How the calculation works
Projects future costs and purchasing power erosion. Read the primary result together with the supporting values rather than focusing on one number alone. A useful estimate should make its assumptions visible. If the answer looks surprising, verify the unit, rate, time period, and whether the entered value is gross or net. Run a conservative and an optimistic scenario to understand the range of possible outcomes.
Formula or method
Future cost = A(1+r)n. Purchasing power = A/(1+r)n.
Worked example
$1,000 at 3% for 10 years costs $1,344, purchasing power $744.
The example is illustrative rather than a recommendation. Use your own verified values and keep all monetary or measurement units consistent. When comparing alternatives, save or note each result so the assumptions do not become mixed.
How to interpret the result
The primary output answers the main question posed by the inflation calculator, while the additional cards provide context. A result with many decimal places is not necessarily more certain. The displayed precision makes comparison easier, but uncertainty in the inputs can be larger than the rounding difference.
Compare the result with a second scenario using a less favorable rate, return, cost, or time period. This sensitivity check often provides more useful planning information than one best-case projection.
Limitations and important notes
The inflation calculator is a planning tool, not a quote, filing calculation, lending decision, or promise of future performance. It does not automatically retrieve live market rates or apply every fee, tax bracket, program rule, product limit, or state law. Rules for products such as FHA, VA, Social Security, retirement accounts, and taxes can change. Confirm time-sensitive values with the lender, plan administrator, IRS, SSA, or another relevant authority before acting.
Frequently asked questions
How does inflation affect my money over time?
Inflation reduces purchasing power over time. At 3% annual inflation, $100 today buys roughly $86 worth of goods in 5 years, $74 in 10 years, and $55 in 20 years, because prices keep rising while the dollar amount stays fixed. This calculator lets you see how much a sum of money will be worth in the future at your chosen inflation rate, or how much a past amount equals in today's dollars using historical CPI data. Use it to check whether savings, salaries, and retirement income are actually keeping pace with the rising cost of living.
What is the average inflation rate?
The long-run average U.S. inflation rate has been about 3-3.5% per year since 1913, while the Federal Reserve targets 2% (measured by PCE). Actual year-to-year inflation varies a lot: it was 1.2% in 2020, 8.0% in 2022, 2.9% in 2024, and roughly 2.4-4.2% across 2026 so far. For long-term planning, most financial planners assume 3% for overall spending and 4-5% for health care. Because inflation is never constant, test your projections against higher rates of 5-6% to stress-check budgets and retirement plans.
What is the current US inflation rate in 2026?
U.S. CPI inflation in 2026 has fluctuated month to month: about 2.4% in January, peaking near 4.2% in May, then cooling to roughly 3.4-3.5% by mid-year, according to BLS data. That is well below the 9.1% peak of June 2022 but still above the Federal Reserve's 2% target. Inflation is published monthly and gets revised, so always check the latest BLS CPI release or a reliable tracking site for the current number. This calculator uses whatever rate you enter, so for historical accuracy use official annual CPI figures.
How is the inflation rate calculated?
Inflation is measured with the Consumer Price Index (CPI), which tracks the cost of a fixed market basket of goods and services, including food, housing, energy, transportation, and more. The year-over-year rate is: ((CPI now - CPI a year ago) / CPI a year ago) x 100. For example, if CPI rose from 300 to 306, inflation is (306 - 300) / 300 x 100 = 2%. Because the basket mixes many items, your personal inflation rate can differ from the headline number if your spending pattern (say, heavy on housing or health care) differs from the average consumer's.
How long does it take for inflation to halve the value of my money?
Use the Rule of 72: divide 72 by the annual inflation rate. At 3% inflation, purchasing power halves in about 24 years (72 / 3). At 4%, it halves in 18 years; at 6%, in 12 years. The effect compounds, so a $100 bill left in a drawer for 24 years at 3% inflation will buy only about $50 of today's goods. This is why cash sitting idle loses real value over time and why inflation is a key input when planning savings, retirement, and long-term investments.
How much will $1,000 today be worth in 10 or 20 years?
It depends on the inflation rate. At 3% annual inflation, $1,000 will have the purchasing power of about $744 in 10 years and $554 in 20 years. At 4%, it falls to about $675 in 10 years and $456 in 20 years. In other words, you will need roughly $1,344 at 3% inflation (or $2,191 at 4%) in 20 years to buy what $1,000 buys today. Enter your own rate into this calculator to see both the future cost and the remaining purchasing power for any amount and time frame.
What is the difference between CPI and core inflation?
CPI (Consumer Price Index) measures the average change in prices for all goods and services urban consumers buy, including volatile food and energy. Core CPI excludes food and energy to reveal the underlying trend, since an oil shock or a bad harvest can swing the headline number sharply. For example, when energy spiked in 2022, headline CPI hit 8-9% while core inflation ran lower. Economists and the Federal Reserve watch core measures closely when deciding interest-rate policy, but headline CPI is the figure most people see quoted in the news and used in cost-of-living adjustments.