Compounded over time
Future value = present value × (1 + rate)^years, compounding inflation across the full period.
Money calculators
Inflation Calculator
See how inflation changes the value of money over time.
Complete guide
How to use Inflation Calculator
Enter an amount, a start year, an end year, and an average annual inflation rate. The calculator compounds the rate across the years to show the equivalent value and the change in purchasing power.
It works in both directions - set the end year earlier to find what a sum was worth in the past.
Purchasing power
See how much $1 from the start year is worth in the end year, so you can compare prices fairly across time.
Forwards or backwards
Project a value into the future or look back to a past year - the calculator handles both.
Answers
Inflation Calculator FAQs
What is inflation?
The rate at which prices rise over time, reducing the purchasing power of money.
What is the average US inflation rate?
The long-term average is about 3% per year, though it varies widely year to year.
How is future value calculated?
Future Value = Present Value × (1 + rate)^years. $1,000 at 3%/yr becomes about $1,343 in 10 years.
Can I calculate backwards?
Yes - set the end year earlier than the start year and the tool finds the past value.
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Methodology and examples
Inflation Calculator - Purchasing Power Over Time: formula, example, and use cases
Maintained by FormatNest. See the methodology, assumptions and sources below.
Formula or method
The result applies the entered principal, rate, contribution, and time period using the selected simple-interest, compound-growth, or amortization model.
Best use cases
Use Inflation Calculator - Purchasing Power Over Time when you need a fast browser-based estimate, comparison, or planning result without creating an account.
Important: For educational planning only. Rates, tax rules, fees, and eligibility vary; confirm important decisions with a qualified professional.
Editorial note: Review the input definitions, units and assumptions before relying on results. For corrections, contact FormatNest with your inputs and expected result.