Inflation Calculator
Purchasing Power of $100 Over Time
How $100 loses value at various inflation rates
| Years | 2% Inflation | 3% Inflation | 4% Inflation | 5% Inflation |
|---|---|---|---|---|
| 5 years | $90.57 | $86.26 | $82.19 | $78.35 |
| 10 years | $82.03 | $74.41 | $67.56 | $61.39 |
| 15 years | $74.30 | $64.19 | $55.53 | $48.10 |
| 20 years | $67.30 | $55.37 | $45.64 | $37.69 |
| 25 years | $60.95 | $47.76 | $37.51 | $29.53 |
| 30 years | $55.21 | $41.20 | $30.83 | $23.14 |
| 40 years | $45.29 | $30.66 | $20.83 | $14.20 |
| 50 years | $37.15 | $22.81 | $14.07 | $8.72 |
How We Calculate This
This inflation calculator uses established formulas and industry-standard data to provide accurate estimates.
- Enter your specific values into the calculator fields above
- Our algorithm applies the relevant formulas using your inputs
- Results are calculated instantly in your browser — nothing is sent to a server
- Review the detailed breakdown to understand how each factor affects your result
These calculations are estimates based on standard formulas. For critical decisions, always consult a qualified professional.
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Inflation erodes purchasing power over time — the same dollar buys less as prices rise. This calculator uses the compound inflation formula to project future values or find past equivalents.
The basic rule:
- Future Value = Present Value × (1 + Inflation Rate)^Years
- Purchasing Power = Original Amount ÷ (1 + Inflation Rate)^Years
- The historical average US inflation rate is about 3.0% per year
- At 3% inflation, prices double roughly every 24 years
Actual inflation varies year by year. The US CPI peaked at over 9% in June 2022 and has historically averaged about 3%. For precise historical calculations, use Bureau of Labor Statistics CPI data.
When Would You Use This Calculator?
This inflation calculator is designed for anyone who needs quick, reliable estimates without complex spreadsheets or professional consultations.
- When you need a quick estimate before committing to a purchase or project
- When comparing different options or scenarios side by side
- When planning a budget and need to understand potential costs
- When you want to verify a quote or estimate you've received from a professional
- When teaching or learning about the concepts behind these calculations
Frequently Asked Questions
What is inflation?
Inflation is the rate at which the general level of prices for goods and services rises over time, decreasing purchasing power. If inflation is 3%, something that costs $100 today would cost $103 a year from now, and your $100 would buy 3% less.
What is the average inflation rate in the US?
The historical average US inflation rate since 1913 is approximately 3.0% per year, as measured by the Consumer Price Index (CPI). However, rates vary significantly — from deflation during the Great Depression to over 14% in 1980 and 9% in 2022.
How does inflation affect savings?
If your savings earn less interest than the inflation rate, you lose purchasing power over time. For example, if inflation is 3% and your savings account earns 1%, you effectively lose 2% per year in real terms. This is why investing in assets that outpace inflation is important for long-term wealth.
What is the Rule of 72 for inflation?
The Rule of 72 helps estimate how quickly prices double. Divide 72 by the inflation rate: 72 ÷ 3% = 24 years for prices to double. At 6% inflation, prices double in about 12 years. This rule also works for investment returns.
What causes inflation?
Inflation is caused by several factors: demand-pull inflation (too much money chasing too few goods), cost-push inflation (rising production costs passed to consumers), and monetary inflation (central banks increasing money supply). Supply chain disruptions and government spending can also drive inflation.
What is the difference between inflation and CPI?
CPI (Consumer Price Index) measures the average change in prices paid by consumers for a basket of goods and services. Inflation is the general rate of price increases. CPI is one way to measure inflation — it tracks specific categories like food, housing, transportation, and healthcare.