About the Inflation Calculator
Inflation erodes purchasing power over time, meaning a fixed dollar amount buys progressively less as years pass. Understanding this is essential for comparing wages, prices, or savings goals across different time periods — $50,000 in 1990 does not represent the same purchasing power as $50,000 today.
This calculator uses annual average values of the Consumer Price Index for All Urban Consumers (CPI-U), the most widely cited U.S. inflation benchmark, to convert an amount from one year into its equivalent purchasing power in another year, in either direction.
Frequently Asked Questions
What exactly is the CPI measuring?
The CPI tracks the average change in prices paid by urban consumers for a fixed basket of goods and services — including food, housing, transportation, and medical care — over time.
Why might my personal experience of inflation feel different?
CPI is a broad national average. Your personal cost-of-living increase can differ significantly based on your specific spending mix, region, and housing situation.
Can this calculator predict future inflation?
No — it only uses historical CPI data through the most recently available year. Projecting future dollars requires assuming a future inflation rate, which is inherently uncertain.