Inflation Calculator
See how inflation affects your purchasing power over time using historical CPI data
Understanding Inflation: The Silent Wealth Killer
Inflation is the rate at which prices for goods and services rise over time, reducing purchasing power. It's a normal economic phenomenon but can silently erode your savings.
The Consumer Price Index (CPI), tracked by the BLS since 1913, is the most widely used measure of inflation.
The Rule of 72
The Rule of 72 shows how long it takes for prices to double at a given inflation rate.
3% inflation
24 years
to double
5% inflation
14.4 years
to double
8% inflation
9 years
to double
Implication: At 3% inflation, you'll need 2.4x more money to maintain the same lifestyle 30 years from now.
How to Use This Calculator
Start Year
Select historical start year (back to 1913).
End Year
Usually current year or future projection.
Amount
Enter the amount to adjust for inflation.
Data Source
Use historical CPI or custom inflation rate.
View Results
See purchasing power changes and total inflation.
How to Protect Against Inflation
Invest in Stocks
Historically 7-10% returns, 4-7% after inflation. Best hedge against inflation.
Real Estate
Property values and rents typically rise with inflation.
TIPS
Treasury Inflation-Protected Securities adjust principal based on CPI.
I Bonds
Savings bonds with interest plus inflation adjustments.
Frequently Asked Questions
Q: How is CPI calculated?βΌ
A: CPI tracks prices of a fixed basket of goods including food, housing, transportation, healthcare, and more.
Q: What was the highest inflation?βΌ
A: US inflation peaked at 14.8% in 1980 during the "Great Inflation" era.
Q: How much will my savings lose?βΌ
A: At 3% average inflation: 10 years = 26% loss, 20 years = 54% loss, 30 years = 70% loss.
Q: How to plan for retirement with inflation?βΌ
A: Plan for 25x annual expenses, adjust savings goals for inflation, and maintain inflation-protected investments.
Q: Does Social Security COLA keep up?βΌ
A: COLA adjusts based on CPI, but may not match everyone's personal inflation experience, especially healthcare costs.
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