Inflation Calculator
Compare how the value of money changes across years using U.S. CPI annual average data.
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How this inflation calculator works
This tool compares the value of dollars across years using U.S. CPI annual average index values. It scales the starting amount by the ratio between the target year CPI and the source year CPI.
Choose the years
Pick the year your starting dollars come from and the year you want to compare against.
Review CPI values
The result uses the source and target CPI annual averages to estimate broad purchasing-power change.
Use as a comparison
Inflation estimates are useful for general planning, but personal prices can differ by location and spending habits.
FAQs
What is inflation?
Inflation is a broad increase in prices over time, which means the same dollar amount generally buys less than it used to.
How do you calculate inflation between two years?
Divide the target year CPI by the source year CPI, then multiply by the amount. Cumulative inflation is the CPI difference divided by the source year CPI.
What does CPI mean?
CPI means Consumer Price Index. It is an index that tracks average price changes for a basket of consumer goods and services.
What does purchasing power mean?
Purchasing power describes how much goods and services a dollar amount can buy. When prices rise, the same nominal dollars usually have less purchasing power.
What is the difference between annual inflation and cumulative inflation?
Annual inflation looks at price change over one year. Cumulative inflation measures the total price change across the full span between the selected years.
Why does $1 buy less over time?
When prices rise, each dollar covers a smaller share of the same basket of goods and services.
Can this predict future inflation?
No. This tool uses stored annual CPI values and does not forecast future prices.
Why might this differ from prices I personally experience?
The CPI is broad and national. Your own costs depend on location, housing, food, transportation, health care, and other personal spending patterns.
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