Free Inflation Calculator - Understand Purchasing Power
Calculate how inflation affects the value of money over time. Best free inflation calculator 2025 - compare historical and future purchasing power.
Quick Answer
An inflation calculator shows how purchasing power changes over time. To calculate future value with inflation: Future = Present × (1 + inflation rate)^years. At 3% annual inflation, $100 today = $134.39 in 10 years (same purchasing power). The US averages 3% inflation historically. Calculate at practicalwebtools.com.
Key Facts about Inflation Calculator:
- US historical average inflation: approximately 3% annually
- $1 in 1970 = $8.10 in 2024 purchasing power
- Inflation erodes savings if return < inflation rate
- The Fed targets 2% annual inflation
- Recent inflation: 6.5% (2022), 3.4% (2023), 2.9% (2024)
- "Real return" = nominal return minus inflation
- Inflation affects different goods at different rates
Why Use Our Inflation Calculator?
Understand inflation impact:
Future Cost
What will things cost in the future?
Past Comparison
What were past dollars worth?
Real Returns
Calculate inflation-adjusted returns.
Historical Data
Use actual CPI data.
Instant Results
Get calculations immediately.
100% Private
Your calculations stay private.
How to Inflation Calculator in 3 Easy Steps
Calculate inflation impact:
Enter Amount
Dollar amount to adjust.
Set Years
Time period for adjustment.
See Results
View equivalent purchasing power.
Plan for Inflation
Understand how money loses value over time
Plan retirement with realistic future costs
Calculate inflation-adjusted investment returns
Compare prices across different years
Common Use Cases for Inflation Calculator
Essential for:
Frequently Asked Questions
Everything you need to know about our inflation calculator
What is inflation?
Rate of price increase - reduces what each dollar can buy.
Inflation is the rate at which prices increase over time, reducing purchasing power. At 3% inflation, $100 today buys what $103 will buy next year.
What is the average inflation rate?
US average: 3%; Fed target: 2%; recent years higher.
US historical average: approximately 3% annually. The Fed targets 2%. Recent years have been higher (6.5% in 2022, moderating since).
How does inflation affect savings?
Erodes purchasing power if savings rate < inflation rate.
If savings earn less than inflation, purchasing power decreases. $10,000 earning 1% loses purchasing power at 3% inflation (real return: -2%).
What is real return vs nominal return?
Real = Nominal minus Inflation. 10% nominal at 3% inflation = 7% real.
Nominal return is the stated return (10%). Real return adjusts for inflation: Real = Nominal - Inflation. 10% nominal at 3% inflation = 7% real.
Still have questions? Try the tool yourself!
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