Inflation Calculator US
Inflation reduces purchasing power over time. Use this tool to estimate future value, past value, or purchasing power loss using compound inflation.
How inflation affects money
Inflation is the general increase in prices over time. When prices rise, each dollar buys fewer goods and services—this is a loss of purchasing power.
Inflation formula explained
This calculator uses compound inflation: Amount × (1 + rate)^years. A higher inflation rate or a longer time horizon increases the impact.
Historical US inflation trends (general)
US inflation changes year to year due to economic cycles, policy decisions, energy prices, supply shocks, and demand. For long-range planning, many people use a steady estimate such as 2%–3%, but actual inflation can be higher or lower.
Frequently Asked Questions
Quick answers about inflation and purchasing power.
What is inflation?
Inflation is a general rise in prices over time, which reduces the purchasing power of money.
How does inflation affect purchasing power?
As prices rise, the same amount of money buys fewer goods and services. This calculator estimates that effect using compound inflation.
How do you calculate inflation over time?
A common approach is compound inflation: Amount × (1 + rate)^years, where rate is the annual inflation rate.
What is a good inflation rate to use?
For planning, many people use 2%–3%, but actual inflation varies. Use a range to understand best/worst-case scenarios.
How accurate is this inflation calculator?
It’s an estimate based on a constant inflation rate. Real inflation changes yearly; a CPI-based version can improve accuracy.
Disclaimer
This calculator provides estimates for informational purposes only. It assumes a constant inflation rate and does not use official CPI data. For precise historical comparisons, use CPI-based tools.