Inflation Calculator: The Value of Money Over Time
See how inflation erodes purchasing power. Enter an amount and two years to find out what your money would be worth, and watch the change play out on a year-by-year chart.
Default 3.2% reflects the long-run average US inflation rate. Adjust it to model different scenarios.
Value Over Time
This calculator estimates purchasing power using a constant average annual inflation rate, so results are approximate. Actual year-to-year inflation varies; for exact figures based on the official Consumer Price Index (CPI), consult the U.S. Bureau of Labor Statistics.
Understanding Inflation & Purchasing Power
What is inflation?
Inflation is the gradual rise in prices over time, which means each dollar buys a little less than it used to. A 3% annual inflation rate means something that costs $100 this year will cost about $103 next year — and your savings need to grow at least that fast just to keep pace.
How this calculator works
It compounds your chosen average annual inflation rate across the number of years between your two dates. Going forward, it grows the amount; going backward, it discounts it. Because it uses a single average rate rather than each year's exact figure, the result is a close estimate, not an official CPI lookup.
Why inflation matters for your money
Cash sitting idle loses value to inflation every year. That's why investing for long-term growth matters: to preserve and build wealth, your returns need to outpace inflation. Use this alongside our compound interest and FIRE tools to plan in real, inflation-adjusted terms.
Frequently Asked Questions
How do you calculate the value of money over time?
Multiply the original amount by (1 + inflation rate) raised to the number of years. For example, $100 at 3% a year for 10 years is 100 × 1.03¹⁰ ≈ $134. This calculator does that automatically and charts each year.
What is a normal inflation rate?
The long-run average US inflation rate is roughly 3% per year, and the Federal Reserve targets about 2%. Individual years vary widely — some are near 0%, while 2022 saw rates above 8%.
Is this based on the official CPI?
No. It estimates purchasing power using a single average annual rate you can adjust, so it's approximate. For exact, year-specific figures, use the official Consumer Price Index from the U.S. Bureau of Labor Statistics.
How can I protect my savings from inflation?
Keeping money in investments that historically outpace inflation — such as diversified stock funds — helps preserve buying power, as can inflation-protected securities (TIPS) and high-yield savings for short-term cash. The key is earning a return above the inflation rate.
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