Inflation Calculator

Enter the amount, select the start and end month/year to calculate the adjusted amount due to inflation. Calculation based on monthly Consumer Price Index (CPI).



Our Inflation Calculator: A Precise Tool for Measuring Purchasing Power Over Time

How the Inflation Calculator Works

Our inflation calculator provides a straightforward way to understand how the value of money changes due to inflation. By inputting an amount of money and selecting two different points in time, you can see how much that amount would be worth at later dates, considering the average inflation rate between those periods.

The calculator uses the Consumer Price Index (CPI), which is one of the most widely used indicators for inflation. The CPI measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. This index reflects the cost of living and offers a clear gauge of purchasing power erosion due to inflation.

Calculating Inflation

To calculate the inflation-adjusted value of your money, our calculator performs the following steps:

  1. Gather CPI Data: It retrieves the CPI values for the start month/year and the end month/year based on the dates you provide. This data is sourced from historical CPI records from 1913 to the present, provided by the U.S. Bureau of Labor Statistics.
  2. Calculate CPI Ratio: The calculator then determines the ratio of the ending period CPI to the starting period CPI. This ratio reflects the overall inflation rate during the selected period.
  3. Adjust the Amount: Finally, the amount you entered is adjusted according to the calculated CPI ratio, providing you with the equivalent value of your money at the later date. This gives a clear picture of how much the purchasing power of your initial amount has changed due to inflation.

Why Use Our Inflation Calculator?

Using our Inflation Calculator helps you:

  • Plan for Retirement: Understand how inflation could impact your savings and the real value of your future income.
  • Make Informed Investment Decisions: Assess the real return on investments by accounting for inflation, ensuring your investments truly grow your wealth over time.
  • Educate on Economic Conditions: Gain insights into historical economic phases and how they influence current financial decisions.

Example Use Case

Suppose you want to know what $100 from January 2000 would be worth in January 2024. By entering these details, our calculator uses CPI data from both months to calculate the inflation rate over this 24-year period and shows you the adjusted value of the $100 in 2024 dollars.

Inflation Calculator Example