📉 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.
🔹 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
How inflation calculator works
An inflation calculator shows how the purchasing power of money changes over time. It compares a starting amount against the Consumer Price Index (CPI) for two dates to work out its equivalent value today.
Limitations of inflation calculators
- Relies on average CPI, not personal spending patterns
- Does not reflect regional price differences
- Past inflation trends may not predict the future
- Excludes taxes, wages and investment returns