Calculate the impact of inflation on any dollar amount. See what past money is worth today, what today's money will be worth in the future, and how inflation affects your purchasing power.

Free Inflation Calculator - What Is Your Dollar Worth Today?

How to Use This Inflation Calculator

This calculator has three modes. Past to Today converts a dollar amount from any year since 1950 to its equivalent value in 2026 dollars using historical CPI data. Today to Future projects what today's money will be worth in the future at a given inflation rate. Salary Adjustment checks whether your salary has kept pace with inflation between any past year and today.

What Is Inflation?

Inflation is the rate at which the general level of prices for goods and services rises over time — and consequently the rate at which purchasing power falls. When inflation is 3% per year a basket of goods that costs $100 today will cost $103 next year.

The United States Federal Reserve targets 2% annual inflation as its long-term goal. In practice inflation has varied significantly — from near zero in the 1950s to double digits in the late 1970s and early 1980s and back to elevated levels in 2021 and 2022 following the COVID-19 pandemic.

How Is Inflation Measured?

The most commonly used measure of inflation in the United States is the Consumer Price Index or CPI published monthly by the U.S. Bureau of Labor Statistics. The CPI tracks the average change in prices paid by urban consumers for a representative basket of goods and services including food, housing, transportation, medical care, education, and recreation.

The Federal Reserve uses a different measure called the Personal Consumption Expenditures Price Index or PCE as its preferred inflation benchmark because it accounts for changes in consumer behavior as prices change.

The Real Impact of Inflation on Purchasing Power

Inflation's impact compounds over time just like interest. At 3% annual inflation the purchasing power of a dollar is cut roughly in half every 24 years. At 2% inflation it takes about 36 years to lose half your purchasing power.

What $100 was worth in the past compared to today:

In 1970 — $100 had the purchasing power of approximately $826 today

In 1980 — $100 had the purchasing power of approximately $388 today

In 1990 — $100 had the purchasing power of approximately $244 today

In 2000 — $100 had the purchasing power of approximately $186 today

In 2010 — $100 had the purchasing power of approximately $146 today

In 2020 — $100 had the purchasing power of approximately $124 today

How Inflation Affects Your Savings and Investments

Cash sitting in a savings account earning less than the inflation rate is actually losing real value every year. If your savings account earns 1% interest but inflation is 3% your money is effectively losing 2% of its purchasing power annually.

This is why financial advisors consistently recommend investing in assets that historically outpace inflation — such as stocks, real estate, and Treasury Inflation-Protected Securities or TIPS — rather than holding large amounts of cash long term.

The S&P 500 has historically returned approximately 10% annually before inflation or about 7% in real inflation-adjusted terms — well above the long-term average inflation rate.

How Inflation Affects Retirement Planning

Inflation is one of the most important and often underestimated factors in retirement planning. If you plan to spend $60,000 per year in retirement and retire today at 65 with a 25-year retirement ahead at 3% inflation your expenses in year 25 will be approximately $125,000 per year.

This is why financial planners use inflation-adjusted projections when calculating how much you need to retire. The commonly cited 4% withdrawal rule already accounts for average historical inflation in its calculations.

Social Security benefits are adjusted annually for inflation through Cost-of-Living Adjustments or COLAs. However private pensions and fixed annuities often are not adjusted for inflation which means their real purchasing power declines over time

Has Your Salary Kept Up with Inflation?

Many workers feel like they are earning more money but able to buy less over time. This is the effect of wage growth failing to keep pace with inflation. If your salary increased by 20% over 10 years but cumulative inflation was 30% over that same period, your real purchasing power actually declined by approximately 8%.

Use the Salary Adjustment tab above to see whether your raises have kept up with the actual rate of inflation since any year back to 1950.

Frequently Asked Questions

What causes inflation?

Inflation is caused by a combination of factors including increased consumer demand, rising production costs, supply chain disruptions, and monetary policy. When more money chases the same amount of goods prices tend to rise. The Federal Reserve uses interest rate policy as its primary tool to control inflation.

Is some inflation good?

Most economists consider moderate inflation of around 2% per year to be healthy for an economy. Mild inflation encourages spending and investment rather than hoarding cash. Deflation — falling prices — can be more economically damaging because it encourages people to delay purchases waiting for lower prices which reduces economic activity.

What is hyperinflation?

Hyperinflation is extremely rapid and out of control inflation typically defined as inflation exceeding 50% per month. Historical examples include Germany in the 1920s and Zimbabwe in the 2000s where prices effectively doubled every few days. The United States has never experienced hyperinflation.

How does inflation affect loans and mortgages?

Inflation generally benefits borrowers with fixed-rate loans because they repay the debt with dollars that are worth less than when they borrowed them. A fixed-rate 30-year mortgage taken out today at 7% will be paid off in dollars that have lost significant purchasing power by the final payments in 2056.

What is the difference between CPI and core inflation?

Core inflation excludes food and energy prices from the CPI calculation because these categories tend to be more volatile. The Federal Reserve often looks at core inflation as a more stable measure of underlying price trends. Headline CPI includes all items including food and energy.

How does inflation affect Social Security?

Social Security benefits are adjusted each year using a Cost of Living Adjustment based on the CPI-W index which measures price changes for urban wage earners and clerical workers. In years with high inflation Social Security recipients receive larger COLA increases.

Based on U.S. Bureau of Labor Statistics Consumer Price Index data. Historical CPI values are approximate annual averages. This calculator is for informational and educational purposes only and does not constitute financial advice.