How does the inflation calculator work?

It uses the Consumer Price Index for All Urban Consumers (CPI-U) from the U.S. Bureau of Labor Statistics. The value of an amount in another month is the amount multiplied by the CPI of that month divided by the CPI of the starting month. If prices doubled between two months, the same goods cost twice as much, so you need twice the dollars.

What data does it use and how current is it?

It uses the monthly CPI-U, U.S. city average, all items, not seasonally adjusted, from January 1913 to the most recent month the Bureau has released. Months after that are not data: they are projected at the inflation rate you enter. The Bureau did not publish an index for October 2025, so that month is the average of September and November.

What inflation rate should I assume for the future?

The Federal Reserve aims for 2% a year over the long run, and many planners use 2% to 3%. Actual inflation has been well above and below that in different periods, for example about 8% in 2022 and about 1.2% in 2020. Try a few rates to see how sensitive your plan is.

What is purchasing power?

It is how much a given amount of money can buy. When prices rise, the same dollars buy less. If prices doubled, $1,000 buys what $500 did before, which is a 50% loss of purchasing power even though the number of dollars did not change.

Is the CPI the same as my personal inflation rate?

No. The CPI measures the average price change of a fixed basket for urban households across the country. Your own rate depends on what you buy and where you live: someone who spends a large share on housing or healthcare may see different inflation from the national figure.

How does inflation affect my savings and investments?

Money earning less than inflation loses buying power, even if the balance grows. To keep up, the return on your savings must exceed the inflation rate. For example, a 4% return with 3% inflation grows your buying power by about 1% a year, while the same account with 5% inflation shrinks it.

📊 Personal Finance

Inflation Calculator · What Your Dollars Were and Will Be Worth

Inflation is the slow rise in prices that makes the same dollar buy less over time. A loaf of bread, a car or a year of rent costs more than it did a generation ago, and the way economists measure that change is the Consumer Price Index, which tracks what urban households pay for a basket of goods and services. This calculator uses the monthly CPI to answer two questions: what an amount of money from a past month is worth in another month's dollars, and what a dollar today may be worth in the future.

Choose a dollar amount, the month and year it comes from and the month and year to compare it with. The calculator multiplies the amount by the ratio of the price index in the two months, so $1,000 in January 2000, when the index was 168.8, equals about $1,528 in January 2020, when it was 257.971. It also shows the total inflation over the period, the average rate per year, the time between the two dates and how much buying power the original amount lost. The figures are the monthly CPI-U published by the U.S. Bureau of Labor Statistics, which starts in January 1913 and runs to the most recent month released.

The tool also looks forward. For any month after the latest published data you can enter the yearly inflation rate you expect, and the calculator extends the index at that rate. At 3% a year, $1,000 today has the buying power of about $744 in ten years, which is why money kept in cash or in an account that pays less than inflation loses value. Projected results are assumptions rather than data, and the calculator marks them that way. The index is a national average, so the inflation you experience depends on what you buy and where you live.

Detailed Breakdown

8 metrics

PRIMARY RESULT

$1,984.48

Equivalent Value in August 2026

Total Inflation Jan 2000 to Aug 2026

98.45%

Average Inflation per Year

2.61%

Time Between the Two Dates

26 years and 7 months

What Your Original Amount Buys in Jan 2000 Dollars

$503.91

Purchasing Power Change

-49.61%

Price Index (CPI-U), Jan 2000

168.800

Price Index (CPI-U), Aug 2026

334.980

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When to Use This Calculator

Everyday financial situations where this tool gives you fast, accurate clarity:

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Value Money from the Past

See what a salary, a price or a savings balance from a past month is worth in current dollars.

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Project Future Prices

Estimate what you will need in the future to buy what costs one amount today.

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Check Your Raise or Savings Return

Compare a pay raise or the interest on an account with inflation to see whether you are really gaining.

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Compare Periods

Find the average yearly inflation between any two months since January 1913.

Calculation Formula

Standard Method

Equivalent Value = Amount × CPI of the Comparison Month ÷ CPI of the Starting Month Total Inflation = CPI of the Comparison Month ÷ CPI of the Starting Month − 1 Average Inflation per Year = (Later CPI ÷ Earlier CPI)^(12 ÷ Months Between) − 1 Buying Power of the Original Amount = Amount × CPI of the Starting Month ÷ CPI of the Comparison Month Purchasing Power Change = Buying Power of the Original Amount ÷ Amount − 1 The CPI values are the monthly CPI-U (all urban consumers, all items, U.S. city average, not seasonally adjusted, 1982-84 = 100) published by the U.S. Bureau of Labor Statistics. For a month after the latest published one the index is projected: CPI = Latest CPI × (1 + Assumed Yearly Rate)^(Months After the Latest ÷ 12). The Bureau did not publish an index for October 2025, so that month is the average of September and November.

Benchmark Example:

$1,000 from January 2000, compared with January 2020: • CPI-U in January 2000: 168.8; in January 2020: 257.971 • Equivalent value in January 2020: $1,000 × 257.971 ÷ 168.8 = $1,528.26 • Total inflation: 52.83% • Average inflation: (257.971 ÷ 168.8)^(1/20) − 1 = 2.14% a year • What $1,000 buys, in January 2000 dollars: $1,000 × 168.8 ÷ 257.971 = $654.34, a loss of 34.57% of its buying power Looking forward, $1,000 compared with the same month ten years later at an assumed 3% a year: $1,000 × 1.03^10 = $1,343.92, so what costs $1,000 now would cost about $1,344 then, and $1,000 would buy only about $744 of today's goods.

Frequently Asked Questions

6 answers

Applicable Laws & Regulatory Standards

Bureau of Labor Statistics, Federal Reserve & Social Security Administration

Official Legal Reference

Federal Reserve Act § 2A — 12 U.S.C. § 225a (Monetary Policy Objectives)

Directs the Federal Reserve to promote maximum employment and stable prices, the legal basis of its inflation target, which is why a steady 2% a year is a common planning assumption.

Social Security Act § 215(i) — 42 U.S.C. § 415(i) (Cost-of-Living Increases)

Requires Social Security benefits to rise each year with consumer price inflation, measured by the CPI for urban wage earners and clerical workers (CPI-W).

Internal Revenue Code § 1(f) (Inflation Adjustments to Tax Brackets)

Adjusts the income tax brackets, the standard deduction and other amounts each year for inflation, so that rising prices alone do not push taxpayers into higher brackets.

Legal citations and statutes are provided for consumer transparency, analytical validation, and educational reference under U.S. consumer financial regulations. This tool is not a substitute for formal legal, accounting, or tax counsel.

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