Inflation Calculator
See how the value of money has changed over the years.
Results
$100 in 2000 had the same buying power as $176.95 in 2023.
What is Inflation?
Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. In simple terms, your dollar buys you less than it did in the past. This calculator uses historical Consumer Price Index (CPI) data to show you the real-world impact.
Frequently Asked Questions (FAQ)
Why is understanding inflation important?
Inflation erodes the value of your savings over time. If your money isn't growing at a rate at least equal to inflation, you're losing purchasing power. This is a critical concept for long-term financial planning, investing, and saving for retirement.
What is the Consumer Price Index (CPI)?
The CPI is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is one of the most popular measures of inflation and deflation. Our calculator uses this data to provide its results.
How does this affect my investments?
For your investments to be truly profitable, they need to generate a "real return"—that is, a return that is higher than the rate of inflation. If your investments grow by 7% but inflation is at 3%, your real return is 4%. This is a crucial concept for building long-term wealth.