$1,000 from 1995 to 2025 at 3% inflation
- Years = 30
- Adjusted ≈ $2,427
- Percent change ≈ 142.7%
finance calculator
Purchasing Power (Inflation) Calculator
See how much an amount in year X is worth in year Y using an average inflation rate.
Results
- Adjusted amount
- $2,427 USD
- Total change
- $1,427 USD
- Percent change
- 142.73%
How to use this calculator
- Enter the starting amount and the year it is from.
- Enter the target end year and an average annual inflation rate.
- See the adjusted amount, dollar change, and percent change instantly.
Inputs explained
- Amount in start year
- The money you want to translate into today's (or another year's) dollars.
- Start year
- The year the original amount is from.
- End year
- The year you want to see the equivalent value in.
- Average inflation rate
- Estimated average annual inflation across the period (use CPI averages or your own assumption).
How it works
We apply compound growth using the average annual inflation rate over the selected years.
Adjusted amount = starting amount × (1 + rate)^(years). Percent change shows total gain/loss.
Formula
Adjusted = Amount × (1 + Rate)^(End − Start)\nYears = End year − Start year
When to use it
- Compare historical salaries or prices to today’s value.
- Set long-term savings goals by adjusting for expected inflation.
- Communicate how costs have changed in presentations or reports.
Tips & cautions
- Use published CPI averages for a country/region to keep assumptions realistic.
- A shorter range or volatile periods may warrant a different rate—run a few scenarios.
- Try a deflation scenario by entering a negative rate if relevant to your timeframe.
- Assumes a constant average rate; real inflation varies yearly and by category.
- Does not handle country/currency conversion—pair with the currency converter if needed.
- Not a substitute for official CPI data when precision is required.
Worked examples
$5,000 from 2010 to 2025 at 2.5% inflation
- Years = 15
- Adjusted ≈ $7,310
- Percent change ≈ 46.2%
Deep dive
This purchasing power calculator compounds your starting amount by an average inflation rate to show what money in one year is worth in another. Enter the start year, end year, and an average CPI-style rate to see the adjusted amount and percent change.
Use it to translate past salaries, budgets, or prices into today's dollars and to illustrate how inflation impacts long-term goals. Because it applies a constant rate, run a few scenarios to bracket different economic conditions.
FAQs
- Is this based on official CPI data?
- No. Enter an average annual rate to model inflation. For precise CPI values, use official indexes.
- Can I model deflation?
- Yes. Use a negative rate to see purchasing power loss reversed.
- What inflation rate should I enter?
- Use a CPI average for your country over the period you are modeling, or test a range (e.g., 2%–4%) to see sensitivity.
- How do I handle partial years?
- Round years to whole numbers for quick estimates. For partial years, reduce the rate proportionally (e.g., half a year at 3% ≈ 1.5%).
- Does this account for region- or category-specific inflation?
- No. It applies a single average rate. Category- or region-specific inflation requires dedicated indexes.
Related calculators
For informational use only. Actual inflation varies by country and category.