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Calculates the equivalent value of the U.S. dollar in any month from 1913 to 2026. Calculations are based on the average Consumer Price Index (CPI) data for all urban consumers in the U.S.
In the United States, the Bureau of Labor Statistics publishes the Consumer Price Index (CPI) every month, which can be translated into the inflation rate. The following is the listing of the historical inflation rate for the United States (U.S. dollar) since it is available in 2013.
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Average |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2.39% | 2.41% | 3.26% | 3.81% | — | — | — | — | — | — | — | — | 2.97% |
| 2025 | 3.00% | 2.82% | 2.39% | 2.31% | 2.35% | 2.67% | 2.70% | 2.92% | 3.01% | — | 2.74% | 2.68% | 2.69% |
| 2024 | 3.09% | 3.15% | 3.48% | 3.36% | 3.27% | 2.97% | 2.89% | 2.53% | 2.44% | 2.60% | 2.75% | 2.89% | 2.95% |
| 2023 | 6.41% | 6.04% | 4.98% | 4.93% | 4.05% | 2.97% | 3.18% | 3.67% | 3.70% | 3.24% | 3.14% | 3.35% | 4.14% |
| 2022 | 7.48% | 7.87% | 8.54% | 8.26% | 8.58% | 9.06% | 8.52% | 8.26% | 8.20% | 7.75% | 7.11% | 6.45% | 8.01% |
| 2021 | 1.40% | 1.68% | 2.62% | 4.16% | 4.99% | 5.39% | 5.37% | 5.25% | 5.39% | 6.22% | 6.81% | 7.04% | 4.69% |
| 2020 | 2.49% | 2.33% | 1.54% | 0.33% | 0.12% | 0.65% | 0.99% | 1.31% | 1.37% | 1.18% | 1.17% | 1.36% | 1.24% |
| 2019 | 1.55% | 1.52% | 1.86% | 2.00% | 1.79% | 1.65% | 1.81% | 1.75% | 1.71% | 1.76% | 2.05% | 2.29% | 1.81% |
| 2018 | 2.07% | 2.21% | 2.36% | 2.46% | 2.80% | 2.87% | 2.95% | 2.70% | 2.28% | 2.52% | 2.18% | 1.91% | 2.44% |
| 2017 | 2.50% | 2.74% | 2.38% | 2.20% | 1.87% | 1.63% | 1.73% | 1.94% | 2.23% | 2.04% | 2.20% | 2.11% | 2.13% |
| 2016 | 1.37% | 1.02% | 0.85% | 1.13% | 1.02% | 1.01% | 0.84% | 1.06% | 1.46% | 1.64% | 1.69% | 2.07% | 1.26% |
| 2015 | -0.09% | -0.03% | -0.07% | -0.20% | -0.04% | 0.12% | 0.17% | 0.20% | -0.04% | 0.17% | 0.50% | 0.73% | 0.12% |
| 2014 | 1.58% | 1.13% | 1.51% | 1.95% | 2.13% | 2.07% | 1.99% | 1.70% | 1.66% | 1.66% | 1.32% | 0.76% | 1.62% |
| 2013 | 1.59% | 1.98% | 1.47% | 1.06% | 1.36% | 1.75% | 1.96% | 1.52% | 1.18% | 0.96% | 1.24% | 1.50% | 1.46% |
| 2012 | 2.93% | 2.87% | 2.65% | 2.30% | 1.70% | 1.66% | 1.41% | 1.69% | 1.99% | 2.16% | 1.76% | 1.74% | 2.07% |
| 2011 | 1.63% | 2.11% | 2.68% | 3.16% | 3.57% | 3.56% | 3.63% | 3.77% | 3.87% | 3.53% | 3.39% | 2.96% | 3.15% |
| 2010 | 2.63% | 2.14% | 2.31% | 2.24% | 2.02% | 1.05% | 1.24% | 1.15% | 1.14% | 1.17% | 1.14% | 1.50% | 1.64% |
| 2009 | 0.03% | 0.24% | -0.38% | -0.74% | -1.28% | -1.43% | -2.10% | -1.48% | -1.29% | -0.18% | 1.84% | 2.72% | -0.34% |
| 2008 | 4.28% | 4.03% | 3.98% | 3.94% | 4.18% | 5.02% | 5.60% | 5.37% | 4.94% | 3.66% | 1.07% | 0.09% | 3.85% |
| 2007 | 2.08% | 2.42% | 2.78% | 2.57% | 2.69% | 2.69% | 2.36% | 1.97% | 2.76% | 3.54% | 4.31% | 4.08% | 2.85% |
| 2006 | 3.99% | 3.60% | 3.36% | 3.55% | 4.17% | 4.32% | 4.15% | 3.82% | 2.06% | 1.31% | 1.97% | 2.54% | 3.24% |
| 2005 | 2.97% | 3.01% | 3.15% | 3.51% | 2.80% | 2.53% | 3.17% | 3.64% | 4.69% | 4.35% | 3.46% | 3.42% | 3.39% |
| 2004 | 1.93% | 1.69% | 1.74% | 2.29% | 3.05% | 3.27% | 2.99% | 2.65% | 2.54% | 3.19% | 3.52% | 3.26% | 2.68% |
| 2003 | 2.60% | 2.98% | 3.02% | 2.22% | 2.06% | 2.11% | 2.11% | 2.16% | 2.32% | 2.04% | 1.77% | 1.88% | 2.27% |
| 2002 | 1.14% | 1.14% | 1.48% | 1.64% | 1.18% | 1.07% | 1.46% | 1.80% | 1.51% | 2.03% | 2.20% | 2.38% | 1.59% |
| 2001 | 3.73% | 3.53% | 2.92% | 3.27% | 3.62% | 3.25% | 2.72% | 2.72% | 2.65% | 2.13% | 1.90% | 1.55% | 2.83% |
| 2000 | 2.74% | 3.22% | 3.76% | 3.07% | 3.19% | 3.73% | 3.66% | 3.41% | 3.45% | 3.45% | 3.45% | 3.39% | 3.38% |
| 1999 | 1.67% | 1.61% | 1.73% | 2.28% | 2.09% | 1.96% | 2.14% | 2.26% | 2.63% | 2.56% | 2.62% | 2.68% | 2.19% |
| 1998 | 1.57% | 1.44% | 1.37% | 1.44% | 1.69% | 1.68% | 1.68% | 1.62% | 1.49% | 1.49% | 1.55% | 1.61% | 1.55% |
| 1997 | 3.04% | 3.03% | 2.76% | 2.50% | 2.23% | 2.30% | 2.23% | 2.23% | 2.15% | 2.08% | 1.83% | 1.70% | 2.34% |
| 1996 | 2.73% | 2.65% | 2.84% | 2.90% | 2.89% | 2.75% | 2.95% | 2.88% | 3.00% | 2.99% | 3.26% | 3.32% | 2.93% |
| 1995 | 2.80% | 2.86% | 2.85% | 3.05% | 3.19% | 3.04% | 2.76% | 2.62% | 2.54% | 2.81% | 2.61% | 2.54% | 2.81% |
| 1994 | 2.52% | 2.52% | 2.51% | 2.36% | 2.29% | 2.49% | 2.77% | 2.90% | 2.96% | 2.61% | 2.67% | 2.67% | 2.61% |
| 1993 | 3.26% | 3.25% | 3.09% | 3.23% | 3.22% | 3.00% | 2.78% | 2.77% | 2.69% | 2.75% | 2.68% | 2.75% | 2.96% |
| 1992 | 2.60% | 2.82% | 3.19% | 3.18% | 3.02% | 3.09% | 3.16% | 3.15% | 2.99% | 3.20% | 3.05% | 2.90% | 3.03% |
| 1991 | 5.65% | 5.31% | 4.90% | 4.89% | 4.95% | 4.70% | 4.45% | 3.80% | 3.39% | 2.92% | 2.99% | 3.06% | 4.25% |
| 1990 | 5.20% | 5.26% | 5.23% | 4.71% | 4.36% | 4.67% | 4.82% | 5.62% | 6.16% | 6.29% | 6.27% | 6.11% | 5.39% |
| 1989 | 4.67% | 4.83% | 4.98% | 5.12% | 5.36% | 5.17% | 4.98% | 4.71% | 4.34% | 4.49% | 4.66% | 4.65% | 4.83% |
| 1988 | 4.05% | 3.94% | 3.93% | 3.90% | 3.89% | 3.96% | 4.13% | 4.02% | 4.17% | 4.25% | 4.25% | 4.42% | 4.08% |
| 1987 | 1.46% | 2.10% | 3.03% | 3.78% | 3.86% | 3.65% | 3.93% | 4.28% | 4.36% | 4.53% | 4.53% | 4.43% | 3.66% |
| 1986 | 3.89% | 3.11% | 2.26% | 1.59% | 1.49% | 1.77% | 1.58% | 1.57% | 1.75% | 1.47% | 1.28% | 1.10% | 1.91% |
| 1985 | 3.53% | 3.52% | 3.70% | 3.69% | 3.77% | 3.76% | 3.55% | 3.35% | 3.14% | 3.23% | 3.51% | 3.80% | 3.55% |
| 1984 | 4.19% | 4.60% | 4.80% | 4.56% | 4.23% | 4.22% | 4.20% | 4.29% | 4.27% | 4.26% | 4.05% | 3.95% | 4.30% |
| 1983 | 3.71% | 3.49% | 3.60% | 3.90% | 3.55% | 2.58% | 2.46% | 2.56% | 2.86% | 2.85% | 3.27% | 3.79% | 3.22% |
| 1982 | 8.39% | 7.62% | 6.78% | 6.51% | 6.68% | 7.06% | 6.44% | 5.85% | 5.04% | 5.14% | 4.59% | 3.83% | 6.16% |
| 1981 | 11.83% | 11.41% | 10.49% | 10.00% | 9.78% | 9.55% | 10.76% | 10.80% | 10.95% | 10.14% | 9.59% | 8.92% | 10.35% |
| 1980 | 13.91% | 14.18% | 14.76% | 14.73% | 14.41% | 14.38% | 13.13% | 12.87% | 12.60% | 12.77% | 12.65% | 12.52% | 13.58% |
| 1979 | 9.28% | 9.86% | 10.09% | 10.49% | 10.85% | 10.89% | 11.26% | 11.82% | 12.18% | 12.07% | 12.61% | 13.29% | 11.22% |
| 1978 | 6.84% | 6.43% | 6.55% | 6.50% | 6.97% | 7.41% | 7.70% | 7.84% | 8.31% | 8.93% | 8.89% | 9.02% | 7.62% |
| 1977 | 5.22% | 5.91% | 6.44% | 6.95% | 6.73% | 6.87% | 6.83% | 6.62% | 6.60% | 6.39% | 6.72% | 6.70% | 6.50% |
| 1976 | 6.72% | 6.29% | 6.07% | 6.05% | 6.20% | 5.97% | 5.35% | 5.71% | 5.49% | 5.46% | 4.88% | 4.86% | 5.75% |
| 1975 | 11.80% | 11.23% | 10.25% | 10.21% | 9.47% | 9.39% | 9.72% | 8.60% | 7.91% | 7.44% | 7.38% | 6.94% | 9.19% |
| 1974 | 9.39% | 10.02% | 10.39% | 10.09% | 10.71% | 10.86% | 11.51% | 10.86% | 11.95% | 12.06% | 12.20% | 12.34% | 11.03% |
| 1973 | 3.65% | 3.87% | 4.59% | 5.06% | 5.53% | 6.00% | 5.73% | 7.38% | 7.36% | 7.80% | 8.25% | 8.71% | 6.16% |
| 1972 | 3.27% | 3.51% | 3.50% | 3.49% | 3.23% | 2.71% | 2.95% | 2.94% | 3.19% | 3.42% | 3.67% | 3.41% | 3.27% |
| 1971 | 5.29% | 5.00% | 4.71% | 4.16% | 4.40% | 4.64% | 4.36% | 4.62% | 4.08% | 3.81% | 3.28% | 3.27% | 4.30% |
| 1970 | 6.18% | 6.15% | 5.82% | 6.06% | 6.04% | 6.01% | 5.98% | 5.41% | 5.66% | 5.63% | 5.60% | 5.57% | 5.84% |
| 1969 | 4.40% | 4.68% | 5.25% | 5.52% | 5.51% | 5.48% | 5.44% | 5.71% | 5.70% | 5.67% | 5.93% | 6.20% | 5.46% |
| 1968 | 3.65% | 3.95% | 3.94% | 3.93% | 3.92% | 4.20% | 4.49% | 4.48% | 4.46% | 4.75% | 4.73% | 4.72% | 4.27% |
| 1967 | 3.46% | 2.81% | 2.80% | 2.48% | 2.79% | 2.78% | 2.77% | 2.45% | 2.75% | 2.43% | 2.74% | 3.04% | 2.77% |
| 1966 | 1.92% | 2.56% | 2.56% | 2.87% | 2.87% | 2.53% | 2.85% | 3.48% | 3.48% | 3.79% | 3.79% | 3.46% | 3.01% |
| 1965 | 0.97% | 0.97% | 1.29% | 1.62% | 1.62% | 1.94% | 1.61% | 1.94% | 1.61% | 1.93% | 1.60% | 1.92% | 1.58% |
| 1964 | 1.64% | 1.64% | 1.31% | 1.31% | 1.31% | 1.31% | 1.30% | 0.98% | 1.30% | 0.97% | 1.30% | 0.97% | 1.28% |
| 1963 | 1.33% | 1.00% | 1.33% | 0.99% | 0.99% | 1.32% | 1.32% | 1.32% | 0.99% | 1.32% | 1.32% | 1.64% | 1.24% |
| 1962 | 0.67% | 1.01% | 1.01% | 1.34% | 1.34% | 1.34% | 1.00% | 1.34% | 1.33% | 1.33% | 1.33% | 1.33% | 1.20% |
| 1961 | 1.71% | 1.36% | 1.36% | 1.02% | 1.02% | 0.68% | 1.35% | 1.01% | 1.35% | 0.67% | 0.67% | 0.67% | 1.07% |
| 1960 | 1.03% | 1.73% | 1.73% | 1.72% | 1.72% | 1.72% | 1.37% | 1.37% | 1.02% | 1.36% | 1.36% | 1.36% | 1.46% |
| 1959 | 1.40% | 1.05% | 0.35% | 0.35% | 0.35% | 0.69% | 0.69% | 1.04% | 1.38% | 1.73% | 1.38% | 1.73% | 1.01% |
| 1958 | 3.62% | 3.25% | 3.60% | 3.58% | 3.21% | 2.85% | 2.47% | 2.12% | 2.12% | 2.12% | 2.11% | 1.76% | 2.73% |
| 1957 | 2.99% | 3.36% | 3.73% | 3.72% | 3.70% | 3.31% | 3.28% | 3.66% | 3.28% | 2.91% | 3.27% | 2.90% | 3.34% |
| 1956 | 0.37% | 0.37% | 0.37% | 0.75% | 1.12% | 1.87% | 2.24% | 1.87% | 1.86% | 2.23% | 2.23% | 2.99% | 1.52% |
| 1955 | -0.74% | -0.74% | -0.74% | -0.37% | -0.74% | -0.74% | -0.37% | -0.37% | 0.37% | 0.37% | 0.37% | 0.37% | -0.28% |
| 1954 | 1.13% | 1.51% | 1.13% | 0.75% | 0.75% | 0.37% | 0.37% | 0.00% | -0.37% | -0.74% | -0.37% | -0.74% | 0.32% |
| 1953 | 0.38% | 0.76% | 1.14% | 0.76% | 1.14% | 1.13% | 0.37% | 0.75% | 0.75% | 1.12% | 0.75% | 0.75% | 0.82% |
| 1952 | 4.33% | 2.33% | 1.94% | 2.33% | 1.93% | 2.32% | 3.09% | 3.09% | 2.30% | 1.91% | 1.14% | 0.75% | 2.29% |
| 1951 | 8.09% | 9.36% | 9.32% | 9.32% | 9.28% | 8.82% | 7.47% | 6.58% | 6.97% | 6.50% | 6.88% | 6.00% | 7.88% |
| 1950 | -2.08% | -1.26% | -0.84% | -1.26% | -0.42% | -0.42% | 1.69% | 2.10% | 2.09% | 3.80% | 3.78% | 5.93% | 1.09% |
| 1949 | 1.27% | 1.28% | 1.71% | 0.42% | -0.42% | -0.83% | -2.87% | -2.86% | -2.45% | -2.87% | -1.65% | -2.07% | -0.94% |
| 1948 | 10.23% | 9.30% | 6.85% | 8.68% | 9.13% | 9.55% | 9.91% | 8.89% | 6.52% | 6.09% | 4.76% | 2.99% | 7.74% |
| 1947 | 18.13% | 18.78% | 19.67% | 19.02% | 18.38% | 17.65% | 12.12% | 11.39% | 12.75% | 10.58% | 8.45% | 8.84% | 14.65% |
| 1946 | 2.25% | 1.69% | 2.81% | 3.37% | 3.35% | 3.31% | 9.39% | 11.60% | 12.71% | 14.92% | 17.68% | 18.13% | 8.43% |
| 1945 | 2.30% | 2.30% | 2.30% | 1.71% | 2.29% | 2.84% | 2.26% | 2.26% | 2.26% | 2.26% | 2.26% | 2.25% | 2.27% |
| 1944 | 2.96% | 2.96% | 1.16% | 0.57% | 0.00% | 0.57% | 1.72% | 2.31% | 1.72% | 1.72% | 1.72% | 2.30% | 1.64% |
| 1943 | 7.64% | 6.96% | 7.50% | 8.07% | 7.36% | 7.36% | 6.10% | 4.85% | 5.45% | 4.19% | 3.57% | 2.96% | 6.00% |
| 1942 | 11.35% | 12.06% | 12.68% | 12.59% | 13.19% | 10.88% | 11.56% | 10.74% | 9.27% | 9.15% | 9.09% | 9.03% | 10.97% |
| 1941 | 1.44% | 0.71% | 1.43% | 2.14% | 2.86% | 4.26% | 5.00% | 6.43% | 7.86% | 9.29% | 10.00% | 9.93% | 5.11% |
| 1940 | -0.71% | 0.72% | 0.72% | 1.45% | 1.45% | 2.17% | 1.45% | 1.45% | -0.71% | 0.00% | 0.00% | 0.71% | 0.72% |
| 1939 | -1.41% | -1.42% | -1.42% | -2.82% | -2.13% | -2.13% | -2.13% | -2.13% | 0.00% | 0.00% | 0.00% | 0.00% | -1.30% |
| 1938 | 0.71% | 0.00% | -0.70% | -0.70% | -2.08% | -2.08% | -2.76% | -2.76% | -3.42% | -4.11% | -3.45% | -2.78% | -2.01% |
| 1937 | 2.17% | 2.17% | 3.65% | 4.38% | 5.11% | 4.35% | 4.32% | 3.57% | 4.29% | 4.29% | 3.57% | 2.86% | 3.73% |
| 1936 | 1.47% | 0.73% | 0.00% | -0.72% | -0.72% | 0.73% | 1.46% | 2.19% | 2.19% | 2.19% | 1.45% | 1.45% | 1.03% |
| 1935 | 3.03% | 3.01% | 3.01% | 3.76% | 3.76% | 2.24% | 2.24% | 2.24% | 0.74% | 1.48% | 2.22% | 2.99% | 2.56% |
| 1934 | 2.33% | 4.72% | 5.56% | 5.56% | 5.56% | 5.51% | 2.29% | 1.52% | 3.03% | 2.27% | 2.27% | 1.52% | 3.51% |
| 1933 | -9.79% | -9.93% | -10.00% | -9.35% | -8.03% | -6.62% | -3.68% | -2.22% | -1.49% | -0.75% | 0.00% | 0.76% | -5.09% |
| 1932 | -10.06% | -10.19% | -10.26% | -10.32% | -10.46% | -9.93% | -9.93% | -10.60% | -10.67% | -10.74% | -10.20% | -10.27% | -10.30% |
| 1931 | -7.02% | -7.65% | -7.69% | -8.82% | -9.47% | -10.12% | -9.04% | -8.48% | -9.64% | -9.70% | -10.37% | -9.32% | -8.94% |
| 1930 | 0.00% | -0.58% | -0.59% | 0.59% | -0.59% | -1.75% | -4.05% | -4.62% | -4.05% | -4.62% | -5.20% | -6.40% | -2.65% |
| 1929 | -1.16% | 0.00% | -0.58% | -1.17% | -1.16% | 0.00% | 1.17% | 1.17% | 0.00% | 0.58% | 0.58% | 0.58% | 0.00% |
| 1928 | -1.14% | -1.72% | -1.16% | -1.16% | -1.15% | -2.84% | -1.16% | -0.58% | 0.00% | -1.15% | -0.58% | -1.16% | -1.15% |
| 1927 | -2.23% | -2.79% | -2.81% | -3.35% | -2.25% | -0.56% | -1.14% | -1.15% | -1.14% | -1.14% | -2.26% | -2.26% | -1.92% |
| 1926 | 3.47% | 4.07% | 2.89% | 4.07% | 2.89% | 1.14% | -1.13% | -1.69% | -1.13% | -0.56% | -1.67% | -1.12% | 0.94% |
| 1925 | 0.00% | 0.00% | 1.17% | 1.18% | 1.76% | 2.94% | 3.51% | 4.12% | 3.51% | 2.91% | 4.65% | 3.47% | 2.44% |
| 1924 | 2.98% | 2.38% | 1.79% | 0.59% | 0.59% | 0.00% | -0.58% | -0.58% | -0.58% | -0.58% | -0.58% | 0.00% | 0.45% |
| 1923 | -0.59% | -0.59% | 0.60% | 1.20% | 1.20% | 1.80% | 2.38% | 3.01% | 3.61% | 3.59% | 2.98% | 2.37% | 1.80% |
| 1922 | -11.05% | -8.15% | -8.74% | -7.73% | -5.65% | -5.11% | -5.08% | -6.21% | -5.14% | -4.57% | -3.45% | -2.31% | -6.10% |
| 1921 | -1.55% | -5.64% | -7.11% | -10.84% | -14.08% | -15.79% | -14.90% | -12.81% | -12.50% | -12.06% | -12.12% | -10.82% | -10.85% |
| 1920 | 16.97% | 20.37% | 20.12% | 21.56% | 21.89% | 23.67% | 19.54% | 14.69% | 12.36% | 9.94% | 7.03% | 2.65% | 15.90% |
| 1919 | 17.86% | 14.89% | 17.14% | 17.61% | 16.55% | 14.97% | 15.23% | 14.94% | 13.38% | 13.13% | 13.50% | 14.55% | 15.31% |
| 1918 | 19.66% | 17.50% | 16.67% | 12.70% | 13.28% | 13.08% | 17.97% | 18.46% | 18.05% | 18.52% | 20.74% | 20.44% | 17.26% |
| 1917 | 12.50% | 15.38% | 14.29% | 18.87% | 19.63% | 20.37% | 18.52% | 19.27% | 19.82% | 19.47% | 17.39% | 18.10% | 17.80% |
| 1916 | 2.97% | 4.00% | 6.06% | 6.00% | 5.94% | 6.93% | 6.93% | 7.92% | 9.90% | 10.78% | 11.65% | 12.62% | 7.64% |
| 1915 | 1.00% | 1.01% | 0.00% | 2.04% | 2.02% | 2.02% | 1.00% | -0.98% | -0.98% | 0.99% | 0.98% | 1.98% | 0.92% |
| 1914 | 2.04% | 1.02% | 1.02% | 0.00% | 2.06% | 1.02% | 1.01% | 3.03% | 2.00% | 1.00% | 0.99% | 1.00% | 1.35% |
This inflation calculator draws on U.S. Bureau of Labor Statistics CPI data — the same index used by the Social Security Administration for COLA adjustments and by the IRS for tax bracket adjustments. Enter a dollar amount, a starting year, and an ending year (or select "today" for 2026). The tool computes the cumulative inflation rate between those years and shows the equivalent value, the total purchasing power lost or gained, and the average annual inflation rate across that span. You can also run it in reverse: enter a future target amount and a time horizon, and the calculator tells you how much today's dollars are actually worth in future terms at a specified rate.
1. Enter the dollar amount you want to convert (e.g., $50,000).
2. Select the starting year — this is the year the original amount was denominated in.
3. Select the ending year — typically 2026, or a future year for projections.
4. For historical conversions, the calculator auto-populates the CPI-based inflation rate; for future projections, enter an assumed annual inflation rate (default: 2.5%).
5. Click Calculate to see the equivalent value, total cumulative inflation percentage, and average annual rate.
6. Review the year-by-year inflation breakdown to see which periods drove the most purchasing power loss.
The inflation calculator uses the compound inflation formula to convert values across time periods:
Adjusted Value = Original Amount × (CPI in End Year ÷ CPI in Start Year)
Equivalently, for a constant assumed rate over N years:
Future Value = Present Value × (1 + r)^N
where r is the annual inflation rate (e.g., 0.025 for 2.5%) and N is the number of years. Purchasing power loss is expressed as: 1 − (Present Value ÷ Future Value). For context, at the historical average of roughly 3% per year, purchasing power is cut in half in approximately 24 years (using the Rule of 72: 72 ÷ 3 = 24).
If you entered $100,000 from 1995 and converted to 2026, the output tells you what that $100,000 would need to be today to have the same real purchasing power — and the cumulative inflation rate between those years. A result of $180,000 means that $100,000 in 1995 is equivalent to $180,000 in 2026 dollars: the money didn't grow, it just kept pace. Any savings account, investment, or salary that grew by less than that rate actually lost real value over the period.
Financial planning tools often default to a 3% inflation assumption, and that's a defensible long-run estimate — but it masks significant variation across periods and goods categories. The 1970s and early 1980s saw inflation regularly above 10%. The 2021–2023 surge pushed CPI to 7–9%. The current 2024 CPI rate of approximately 2.9% is actually closer to the Fed's target than recent history might suggest.
More importantly, the CPI reflects a basket of consumer goods — but your personal inflation rate depends heavily on what you spend money on. Healthcare inflation has consistently outpaced overall CPI. College tuition inflation has run roughly twice the CPI average for decades. Housing costs in many metro areas have compounded at 4–6% annually. If you're planning retirement income that must cover large healthcare expenditures, using a blanket 2.5% inflation assumption likely understates the problem.
The calculator lets you customize the inflation rate rather than locking in a single default — that flexibility is where the real planning value lives.
The investment return figures you see in fund brochures and retirement calculators are almost always nominal — they haven't been adjusted for inflation. A 10% nominal return sounds strong until 3% of it evaporates to inflation, leaving a 7% real return. The distinction matters enormously over long time horizons.
Here's the relationship: Real Return ≈ Nominal Return − Inflation Rate (the Fisher equation gives a more precise version: Real Return = [(1 + Nominal) ÷ (1 + Inflation)] − 1).
Historically, the S&P 500's nominal average return is approximately 10%; after inflation, the real return averages closer to 7%. That 3-percentage-point gap is inflation's silent extraction.
For fixed-income investors, the gap is starker. A 5-year Treasury yielding 4.3% in a 2.9% inflation environment delivers only 1.4% in real terms — modest protection, not growth. The inflation calculator can model this: enter your expected nominal return and inflation rate to see the real purchasing-power outcome of any investment over time.
Retirement planning is where inflation does its most underappreciated damage. A $60,000 annual income in retirement that feels comfortable at age 65 will feel considerably more constrained at age 85 if not adjusted for inflation. At a consistent 3% annual inflation rate, purchasing power falls by roughly 45% over 20 years.
Most defined-benefit pension plans offer fixed monthly payments — they don't adjust for inflation. Social Security does: the 2026 COLA is 2.8%, applied to all retired-worker benefits. But 2.8% is still below the Fed's 2% target only in favorable years; when inflation spikes, Social Security's COLA mechanism lags by one year.
The retirement inflation gap matters most for withdrawals from fixed accounts: a retiree drawing $72,000/year from a $1.2 million account at age 65 needs that draw amount to grow about 3% annually to maintain real spending. If the portfolio returns 7% nominal but inflation runs at 3%, the real return of 4% means the account can sustain roughly 25 years of inflation-adjusted withdrawals — not the 30+ years many planners target.
The starting and ending years define the CPI data range used for historical conversions — more years mean more compounding. The inflation rate assumption is the most consequential input for forward projections; even a 0.5% difference in the assumed rate creates large divergence over 20–30 years. Spending category matters: if your costs concentrate in healthcare, housing, or education, your personal inflation rate likely exceeds general CPI. Frequency of compounding in the formula is always annual for standard CPI calculations. COLA adjustments from Social Security (2.8% in 2026) and indexed pension benefits represent real-world inflation protection mechanisms that partially offset purchasing power erosion; the calculator helps quantify the gap between COLA and actual spending inflation.
Marlene paid $185,000 for her Minneapolis home in 1998. She wants to know what that represents in 2026 dollars. At cumulative CPI inflation of approximately 89% from 1998 to 2026, $185,000 in 1998 equals approximately $350,000 in 2026 purchasing power. Her home is currently listed at $420,000. In real terms, her home has appreciated about $70,000 above inflation — a modest but real gain for a nearly 30-year hold.
Darnell plans to retire at 65 with $80,000/year in today's dollars. He wants to know what that means in 10 years at 2.8% inflation (the current COLA rate). Using the formula: $80,000 × (1.028)^10 = approximately $105,600/year in 2036 nominal dollars. Darnell's retirement portfolio needs to be sized to support that larger draw — not the $80,000 figure that feels comfortable today.
1. Use the inflation calculator before setting a retirement savings target. A $1.5M goal set in today's dollars may need to be $2M+ in future nominal terms depending on your time horizon and assumed inflation rate.
2. Compare your real investment returns, not nominal returns. Subtract your assumed inflation rate from your expected return; that remainder is the growth that actually increases purchasing power.
3. Model healthcare inflation separately. Medical CPI has historically run 1–2% above general CPI — use a 4–5% assumption for healthcare-heavy retirement budgets.
4. Check whether your pension or annuity includes inflation protection. Fixed-payment income streams lose real value every year; the calculator quantifies exactly how much by end of retirement.
5. Use the calculator for salary negotiations. If your salary was $90,000 three years ago and hasn't changed, you've effectively received a pay cut — inflation-adjust it to show the real erosion to management.
6. Apply both historical and forward modes. Run the historical CPI lookup to see what past purchasing power looked like, then run the forward projection to stress-test your plans at 2%, 3%, and 4% inflation rates.
A: The 2024 CPI inflation rate was approximately 2.9%, and the Federal Reserve's long-run target is 2%. For 2026 projections, most financial planners use 2.5–3% as a default assumption, though the calculator allows any custom rate you prefer.
A: It measures how much the purchasing power of a dollar amount changes over time using the Consumer Price Index (CPI), which tracks the average price change of a basket of consumer goods and services. A dollar in 1990 buys considerably less in 2026 — the calculator quantifies that difference precisely.
A: Nominal value is the face-value dollar amount unadjusted for inflation. Real value is what that amount actually buys in terms of goods and services, adjusted for the cumulative price changes since a base year. Real value is what matters for purchasing-power analysis.
A: The Rule of 72 estimates how many years it takes for purchasing power to be cut in half at a given inflation rate: 72 ÷ inflation rate = years to lose half your purchasing power. At 3% inflation, purchasing power halves in approximately 24 years; at 4%, it halves in 18 years.
A: CPI tracks a weighted average basket of goods across all US consumers. If you spend more than average on healthcare, housing, or education — categories that have historically inflated faster than general CPI — your personal inflation rate is likely higher than the published figure.
A: Social Security benefits are adjusted annually by the Cost-of-Living Adjustment (COLA), which tracks the CPI-W index. The 2026 COLA is 2.8%, meaning benefits rose 2.8% in January 2026. However, COLA is based on the prior year's CPI and may lag actual inflation in periods of rapid price increases.
A: Most financial planners use 2.5–3% for general expenses, 4–5% for healthcare expenses, and 2% for the Federal Reserve's long-run target. Running the calculator at all three rates — 2%, 3%, and 4% — and comparing the results shows the range of outcomes and the sensitivity of your plan to the inflation assumption.
A: Moderate inflation typically signals a healthy, growing economy, and it benefits borrowers with fixed-rate debt (the real cost of the debt shrinks over time). However, for cash savers and fixed-income retirees, inflation is uniformly negative unless the savings account or investment return exceeds the inflation rate.
Brief disclaimer: This calculator provides estimates for educational and planning purposes only. Historical CPI data is sourced from the U.S. Bureau of Labor Statistics and reflects the Consumer Price Index for All Urban Consumers (CPI-U). Forward projections use user-specified inflation assumptions that may differ from actual future rates. Results should be treated as planning guidance rather than precise financial forecasts. Consult a qualified financial professional for personalized advice.