Inflation Calculator
Calculate the equivalent value of the U.S. dollar in different years using three methods: Historical CPI data (1913-2025), forward flat rate inflation estimates, and backward flat rate purchasing power calculations.
Inflation Calculator with U.S. CPI Data
Calculates the equivalent value of the U.S. dollar in any month from 1913 to 2025. Calculations are based on the average Consumer Price Index (CPI) data.
Result
$137.04 in Sep. 2025 equals $100 of buying power in 2015 (Average).
The total inflation rate from 2015 (Average) to Sep. 2025 is 37.04%. The average inflation rate is 3.15% per year.
The CPI of 2015 (Average) is 237.017 and the CPI of Sep. 2025 is 324.8.
Purchasing Power Over Time
Forward Flat Rate Inflation Calculator
Calculates an inflation based on a certain average inflation rate after some years.
Result
$100 now equals $134.39 after 10 years in purchasing power with an average inflation rate of 3%.
Backward Flat Rate Inflation Calculator
Calculates the equivalent purchasing power of an amount some years ago based on a certain average inflation rate.
Result
$100 now equals $74.41 of purchasing power 10 years ago with an average inflation rate of 3%.
Frequently Asked Questions
Inflation is defined as a general increase in the prices of goods and services, and a fall in the purchasing power of money. Inflation can be artificial in that the authority (central bank, government, etc.) can control the supply of money in circulation.
The inflation rate itself is generally conveyed as a percentage increase in prices over 12 months. Most developed nations try to sustain an inflation rate of around 2-3% through fiscal and monetary policy.
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by consumers for goods and services. The CPI is published monthly by the U.S. Bureau of Labor Statistics.
This calculator uses CPI data to calculate the real purchasing power of money across different years.
Method 1: Using CPI
Method 2: Using Prices
Method 3: Purchasing Power
Purchasing power refers to the amount of goods and services that can be purchased with a unit of currency. As inflation increases, the purchasing power of money decreases because each unit of currency buys fewer goods and services.
CPI (Consumer Price Index): A number measuring the average change in prices paid by consumers. It's an absolute value (e.g., 324.8).
Inflation Rate: The percentage change in CPI from one period to another. It shows how fast prices are rising (e.g., 3.15% per year).
Common causes of inflation:
- Demand-Pull Inflation: "Too much money chasing too few goods"
- Cost-Push Inflation: Rising production costs (wages, materials)
- Expansion of Money Supply: Central banks print more money
- Supply Chain Disruptions: Limited goods availability increases prices
- Import Costs: Currency depreciation makes imports more expensive
- Expectations: If people expect inflation, they demand higher wages
Moderate inflation (2-3%) is actually beneficial:
- Encourages spending and investment (not hoarding cash)
- Reduces real debt burden
- Allows real wages to fall without wage cuts
- Provides room for monetary policy adjustments
High inflation (above 5%) is problematic:
- Erodes savings value
- Reduces purchasing power dramatically
- Creates economic uncertainty
- Hurts fixed-income earners
- Can lead to hyperinflation if unchecked
Strategies to protect your wealth from inflation:
- Stocks: Historically outpace inflation long-term
- Real Estate: Property values and rents typically rise with inflation
- TIPS Bonds: Treasury Inflation-Protected Securities adjust with inflation
- Commodities: Gold, oil, and other commodities rise with inflation
- Diversification: Spread investments across asset classes
- I-Bonds: U.S. savings bonds with inflation-adjusted rates
- Wage Growth: Negotiate raises to keep pace with inflation
- Debt: Borrow at fixed rates before inflation rises