Inflation Calculator
Calculate the purchasing power of any dollar amount over time. Use historical US CPI data from 1913 to 2026 to see how inflation has eroded or grown the value of money. Free.
Calculator
Example result
Example purchasing-power comparison
Using the CPI values in this calculator, $50,000 in 2000 is equivalent to approximately $94,367 in 2026 dollars.
| Original amount | $50,000 |
|---|---|
| From year | 2000 |
| To year | 2026 |
| Cumulative CPI change | 88.7% |
| Average annual inflation rate | 2.47% |
| Equivalent amount in 2026 dollars | $94,367 |
This example mirrors the purchasing-power tab defaults. Historical CPI series are updated periodically and the result is an estimate, not a measure of an individual budget.
Key Takeaways
What You Should Know
- Inflation changes purchasing power: the same number of dollars can buy different amounts in different years.
- Historical comparisons use the CPI series built into this calculator; future-value scenarios use the rate you enter.
- CPI is a broad average and may not match the price changes in an individual household’s budget.
How it works
Calculation methodology
How Inflation Erodes Purchasing Power
At 3% annual inflation, prices double every 24 years. This means a $50,000 salary in 2002 had the same purchasing power as roughly $93,000 today. It also means $1,000 sitting in a savings account paying 0.5% in 2002 has grown to about $1,260 nominally — but its real purchasing power is only about $680 in 2026 dollars.
The Real Return Equation
Real return = nominal return − inflation rate (approximately). A savings account at 4.5% during 3% inflation earns a real return of +1.5%. A bond fund at 2% during 3% inflation earns −1% real — you’re losing purchasing power. This is why all investment analysis should be done in real terms: compare returns to inflation, not to zero.
Social Security COLA Adjustments
Social Security benefits receive Cost of Living Adjustments (COLAs) tied to CPI-W each year. The 2026 COLA was 2.8%. This partially protects retirees from inflation but lags actual consumer experience — healthcare and housing costs (which consume more of retiree budgets) often inflate faster than CPI.
See how inflation affects your retirement income in our Retirement Calculator.
Questions
Frequently Asked Questions
Assumptions
What this example assumes
- Historical comparisons use the CPI values maintained in this calculator.
- Future-value projections use the inflation rate entered by the user.
- CPI is a national average and may not represent a particular household, city, or purchase category.
Sources
Data sources
These sources support the inputs and assumptions used by this calculator. They are not personalized financial advice.
- BLS Consumer Price Index
Primary U.S. Consumer Price Index source for historical purchasing-power comparisons.
- Federal Reserve: inflation and price indexes
Federal Reserve economic-series catalog used as a secondary data reference.