See how inflation has eroded the purchasing power of your money over time. Enter any amount and time period to instantly find its equivalent value in today's dollars.
Inflation is the sustained increase in prices across an economy over time. When inflation runs at 3% annually, something that costs $100 today will cost $103 next year — and $134 in ten years. The U.S. Federal Reserve targets 2% annual inflation as a sign of a healthy, growing economy. When inflation runs hotter than that target, the purchasing power of every dollar you hold quietly erodes.
The Consumer Price Index (CPI), published monthly by the U.S. Bureau of Labor Statistics, is the most widely used measure of inflation. It tracks the average change in prices paid by urban consumers for a representative basket of goods and services — including food, housing, transportation, medical care, and education.
Enter a dollar amount and two years to see how purchasing power has shifted. The calculator uses actual historical CPI data from the BLS. For years beyond the available dataset, you can enter a custom annual inflation rate to model future scenarios. A $100 purchase in 2000 costs approximately $178 in 2026 — that's 78% cumulative inflation over 26 years, or about 2.2% annually.
The results show both the equivalent value and the total inflation rate between the two periods. Use this to benchmark raises against inflation, evaluate whether your savings are keeping pace, or understand what a fixed pension payment will actually be worth in retirement.
If your savings account earns 0.5% APY and inflation runs at 3%, your real return is negative 2.5% per year. Your balance grows in nominal terms but shrinks in purchasing power. After ten years, $10,000 in a low-yield account would have roughly $8,800 worth of purchasing power in today's dollars — even though the balance shows $10,511. This gap between nominal and real returns is one of the most underappreciated risks for savers. See our Best HYSA Rates page for accounts currently earning above the inflation rate.
Historically, broad stock market index funds have returned roughly 7% annually after inflation — meaning they've outpaced inflation by a meaningful margin over long periods. Bonds, especially fixed-rate bonds, are more vulnerable: a bond paying 3% when inflation runs at 4% generates a negative real return. This is why financial planners recommend holding equities for long-term goals and why inflation-protected securities (TIPS) exist for conservative investors who still need inflation protection.
Inflation is one of the largest risks in retirement planning, especially for long retirements. At 3% annual inflation, purchasing power is cut in half in about 24 years. A $60,000 retirement income that feels comfortable at 65 may feel tight at 80 if it isn't inflation-adjusted. Social Security benefits are indexed to inflation via Cost-of-Living Adjustments (COLAs), but most fixed pensions and annuity payments are not. Use the 401(k) Calculator to model inflation-adjusted retirement projections and see how much you'll actually need.
Inflation has varied dramatically throughout U.S. history. The 1970s saw double-digit inflation peaking at over 14% in 1980, driven by oil shocks and loose monetary policy. The 1990s and 2000s were unusually stable, with inflation averaging around 2–3%. The pandemic-era surge pushed inflation to 9.1% in mid-2022 — the highest since 1981 — before the Federal Reserve's rate hikes brought it back toward 3% by 2024. Understanding this history helps put current purchasing power calculations in context.