Inflation Calculator
See how inflation erodes purchasing power and what things will cost in the future.
About the Inflation Calculator
Inflation is the gradual increase in the price of goods and services over time, which means the same amount of money buys less in the future than it does today. The US Federal Reserve targets a 2% annual inflation rate, but actual inflation has varied widely — averaging around 3% over long historical periods. This calculator uses compound inflation, the same math that governs price changes in the real economy.
To protect your wealth from inflation, it's important to make your savings work harder. Use our Savings Calculator to model how regular contributions can compound over time and potentially outpace inflation. For more aggressive growth, the Investment Calculator can show how market returns historically exceed inflation over long periods.
When thinking about your salary, remember that a 3% raise in a 4% inflation environment is actually a real pay cut. Regularly revisiting your compensation against current inflation rates helps ensure your purchasing power keeps pace with the cost of living.
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For a related calculation, use Sales Tax Calculator to add or remove sales tax from any price with our instant sales tax calculator. Alternatively, use Salary Calculator to convert salary between hourly, daily, weekly, biweekly, monthly, and annual pay periods.