How to use the Inflation Calculator
- Enter an amount of money in today's dollars.
- Set the yearly inflation rate you expect and the number of years.
- Read the future cost of the same goods and how much today's money will really be worth.
How it works
Inflation compounds like interest, but against you:
Future cost = amount × (1 + inflation)yearsPurchasing power = amount ÷ (1 + inflation)years
The doubling time uses ln 2 ÷ ln(1 + rate) — at 3% a year, prices double roughly every 23 years.
Frequently asked questions
What inflation rate should I use?
The Federal Reserve targets 2% a year over the long run, and long-term U.S. inflation has averaged around 3%. For retirement planning many people test both 2.5% and 3.5%.
How do I protect savings from inflation?
Money that earns less than inflation loses purchasing power. Diversified investments, Treasury Inflation-Protected Securities (TIPS) and I Bonds are common ways savers try to keep pace.
Does this use historical CPI data?
No. It projects with a constant rate you choose. For exact historical comparisons use the Bureau of Labor Statistics CPI inflation calculator.