Find out what a dollar from any year is worth today, or how much today's money will buy in the future at a given inflation rate.
Enter an original dollar amount, start year, end year, and an annual inflation rate. The calculator compounds that inflation rate over the number of years between the two dates to show you the equivalent purchasing power.
The default rate of 3% is a reasonable long-run average for US CPI inflation. The Federal Reserve targets 2% inflation. Historically the US has averaged closer to 3–3.5% over long periods.
For example: $1,000 in 2000 at 3% inflation for 25 years → $1,000 × (1.03)^25 = $2,094
Inflation is the rate at which the general level of prices for goods and services rises over time, eroding purchasing power. When inflation is 3%, something that cost $100 last year costs $103 this year. The US Federal Reserve targets 2% annual inflation as a sign of a healthy economy.
For historical US inflation, the average from 1913 to 2024 is about 3.2%. For future projections, the Fed's 2% target is a commonly used planning assumption. For specific goods like healthcare or college tuition, the relevant inflation rate can be much higher than general CPI.
If your savings account earns 1% and inflation is 3%, your money loses 2% of its purchasing power each year. This is why investing (historically returning 7–10% annually) is critical for wealth preservation. Money sitting in low-yield accounts loses real value over time.