Inflation Calculator
See how inflation erodes purchasing power over time. Defaults to the US long-term average of 3.2%.
Inflation details
Future cost equivalent
$1,000 today = $1,370 in 10 years
At an average inflation rate of 3.2% per year.
Purchasing power in reverse
$1,000 in 10 years = $729.80 today
Purchasing power lost
$270.20
Real value today
$729.80
Frequently Asked Questions about the Inflation Calculator
What inflation rate should I use?
The US long-term average CPI inflation is about 3.2% per year (1913-2023). Recent decades averaged closer to 2-3%. The calculator defaults to 3.2%.
Why does the Fed target 2% inflation?
The Federal Reserve targets 2% annual inflation as a balance: low enough to keep prices stable, high enough to avoid deflation and give the Fed room to cut rates during recessions.
What is hyperinflation?
Hyperinflation is extreme inflation, typically over 50% per month. Historical examples include Weimar Germany (1923), Zimbabwe (2008), and Venezuela (2018), where currencies became nearly worthless within weeks.
What is the Rule of 72 for inflation?
Divide 72 by the inflation rate to estimate how many years it takes for prices to double. At 3% inflation, prices double in roughly 24 years. At 6%, just 12 years.
How is US inflation measured?
The Bureau of Labor Statistics tracks the Consumer Price Index (CPI), a basket of goods and services including food, housing, transportation, and medical care. CPI-U is the most commonly cited figure.