Inflation Calculator

Note: Inflation rate is based on U.S. Consumer Price Index (CPI) data. The result is shown in your selected currency for illustrative purposes.

Frequently Asked Questions

What is inflation?

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling. For example, if the inflation rate is 2%, then a product that costs $1 this year will cost $1.02 next year.

What is the CPI (Consumer Price Index)?

The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. This calculator uses historical annual CPI data from the U.S. Bureau of Labor Statistics to measure inflation.

How does this calculator work?

This calculator uses the formula: End Value = Start Value × (End Year CPI / Start Year CPI). By comparing the CPI values between two years, it can determine the equivalent purchasing power of money.

How to Use This Calculator

To see how the value of money has changed:

Select your preferred currency.
Enter an amount of money.
Select the starting year for that amount.
Select the ending year to compare it to.
Click "Calculate" to see the result.

Understanding Purchasing Power

Purchasing power is the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Inflation decreases purchasing power over time. This tool helps you visualize that change.