Inflation is the general increase in prices over time, reducing purchasing power. $100 today buys less than $100 a decade ago.

How can I protect against inflation?

Invest in assets that outpace inflation: stocks, real estate, TIPS (Treasury Inflation-Protected Securities), and commodities.

Inflation Calculator — Purchasing Power Tool 2026

📉 Inflation Calculator — Purchasing Power Tool 2026

Free Inflation Calculator — See how inflation erodes purchasing power over time. Calculate the future value of money with historical or custom inflation rates. Plan your long-term finances.

✓ Historical CPI 1913-2026 ✓ Custom Rate ✓ Purchasing Power Chart ✓ Year-by-Year Breakdown

💰 Amount ($)

📅 Start Year

📅 End Year

📊 Inflation Rate Method

Historical CPI (Official) Custom Rate

📈 Average Annual Inflation Rate (%)

Using official US Consumer Price Index (CPI) data from 1913 to 2026

💰 Adjusted Value

Total Inflation

Average Annual Rate

📊 Purchasing Power Impact

What cost $1,000 in [start year] would cost ~$X today.

📈 Purchasing Power Over Time

📘 Inflation Guide — Protecting Your Purchasing Power

🔹 What is Inflation?

Inflation is the general increase in prices over time, reducing what your money can buy. $100 today buys less than $100 did 10 years ago. Our calculator shows the exact impact.

🔹 How CPI is Calculated

The Consumer Price Index (CPI) tracks a basket of goods (food, housing, transportation, etc.). The Bureau of Labor Statistics updates it monthly. Our data covers 1913-2026.

🔹 Historical Inflation Trends

The US averaged ~3% inflation since 1913. The 1970s saw double-digit inflation. Recent years (2021-2024) saw 4-9% inflation due to supply chain and fiscal stimulus.

🔹 Custom vs Historical

Use historical CPI for actual past inflation. Use custom rate to project future inflation or test scenarios like "what if inflation averages 4%?"

🔹 Inflation Hedges

Assets that beat inflation: stocks (S&P 500 ~10% long-term), real estate, TIPS (Treasury Inflation-Protected Securities), gold, and commodities.

🔹 Retirement Planning

When planning for retirement, use a real return (nominal return minus inflation). Example: 7% investment return with 3% inflation = 4% real return.

❓ Frequently Asked Questions

What is inflation and why does it matter? +

Inflation is the rate at which prices rise over time. It matters because it erodes purchasing power. $1,000 today will buy less in 10 years if inflation averages 3%.

How is inflation calculated in this tool? +

We use official Consumer Price Index (CPI) data from the U.S. Bureau of Labor Statistics from 1913 to 2026. You can also enter a custom average annual rate.

What is a typical inflation rate? +

The long-term average inflation rate in the US is about 2.5-3%. The Federal Reserve targets 2% annually. Recent years have seen higher inflation (4-9%).

How can I protect my savings from inflation? +

Invest in assets that historically outpace inflation: stocks (index funds), real estate, I Bonds, TIPS, and commodities. Avoid keeping large amounts in cash for long periods.

What is the difference between nominal and real returns? +

Nominal return is the actual percentage gain. Real return is nominal minus inflation. Example: 8% investment return with 3% inflation = 5% real return.

⭐ Pro tip: Use the custom rate to plan for retirement. If you expect 3% inflation, $50,000 in today's dollars will need ~$90,000 in 20 years to maintain purchasing power.