Future Cost
$14,693.28
Future Purchasing Power
$6,805.83
How it works
The Inflation Calculator determines how the purchasing power of money changes over time using historical CPI (Consumer Price Index) data. Enter any amount and a starting year, and see what that amount is worth in today's dollars — or what today's amount was worth in a past year.
Understanding inflation is essential for financial planning. A salary of $50,000 in 2000 had the purchasing power of approximately $88,000 in 2024 — meaning a 2024 salary must be at least $88,000 to have the same real value. Retirement savings projections, pension valuations, and historical salary comparisons all require inflation adjustment.
How to use it: enter a dollar amount and the starting year (or use the slider). The calculator adjusts the amount to today's dollars using the Bureau of Labor Statistics CPI-U dataset. Switch to "Future Value" mode to project how much today's money will be worth in a future year assuming a specified inflation rate.
CPI dataset: the tool uses the BLS CPI-U (All Urban Consumers) index, which is the most widely cited US inflation measure covering approximately 93% of the US population. Historical data goes back to 1913.
Custom inflation rate: for forward-looking projections (retirement planning, business forecasting), enter a custom annual inflation rate rather than relying on historical averages. The 20-year average US inflation rate is approximately 2.4%.
Purchasing power table: a year-by-year breakdown shows how $1 depreciates (or appreciates) over the selected time period.
Privacy: CPI data is bundled with the tool and processed locally.
Frequently Asked Questions
- The average US CPI-U inflation rate from 2004 to 2024 was approximately 2.6% per year. The 2021–2023 period saw elevated inflation (7–9%), which raised the 10-year average. Long-run planning typically uses 2–3% as a base assumption for future inflation projections.
- Enter the salary amount and the year it was earned in the 'From Year' field. Select the current year as the 'To Year'. The calculator adjusts for cumulative CPI change. A $50,000 salary in 2000 has the purchasing power of approximately $88,000 in 2024 — meaning someone earning $50,000 today has significantly less real purchasing power than a $50,000 earner in 2000.
- CPI-U (All Urban Consumers) includes all goods and services including volatile food and energy prices. Core inflation excludes food and energy — it's more stable and is what the Federal Reserve primarily targets. Core inflation is typically 0.2–0.5% lower than headline CPI-U. This tool uses CPI-U, the most comprehensive measure.
- At 3% annual inflation, $1 million today is worth only $412,000 in purchasing power after 30 years. Retirement savings must grow faster than inflation to maintain real value. A retirement portfolio returning 7% nominal and experiencing 3% inflation achieves only 4% real return. Inflation adjustment is one of the most important factors in retirement planning.