How to Use Our Inflation Calculator

3 min read

How to Use Our Inflation Calculator

A dollar today is not worth the same as a dollar tomorrow. Our Inflation Calculator shows you exactly how inflation erodes purchasing power over time.

What to Enter

• Dollar Amount -- The amount you want to adjust for inflation.
• Start Year -- The year of the original amount.
• End Year -- The year you want to compare to (or project to).
• Inflation Rate -- Use the historical average (~3%) or enter a custom rate for projections.

Understanding the Results

Equivalent Value -- What your original amount is worth in the target year. For example, $100 in 2000 has the same purchasing power as roughly $180 in 2024 -- meaning prices have nearly doubled in 24 years.

Total Inflation -- The cumulative percentage increase over the period.

Average Annual Rate -- The average year-over-year inflation rate for the period.

Why This Matters for Financial Planning

Inflation is the silent threat to every financial plan. If your investments earn 7% but inflation runs at 3%, your real return is only 4%.

Key applications:

• Retirement planning -- $50,000/year in today's dollars will need to be $90,000+ in 20 years at 3% inflation.
• Salary negotiations -- A raise below the inflation rate is effectively a pay cut.
• Investment returns -- Always think in real (inflation-adjusted) terms, not nominal terms.

Related Calculators