Inflation Calculator

Inflation is often called the 'silent tax'. It is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. A dollar today is not worth the same as a dollar in 1980, nor will it be worth the same in 2050. Our Inflation Calculator helps you understand the true value of money across different time periods.

To use the tool, enter an amount of money and two years: a start year and an end year. The calculator uses historical Consumer Price Index (CPI) data to show you what that amount is equivalent to in the other year. For example, you can find out that a $0.25 movie ticket in 1940 would cost significantly more today.

This tool is essential for salary negotiations. If you made $50,000 five years ago and still make $50,000 today, you have effectively taken a pay cut due to inflation. Use this calculator to determine what salary you need today to match your standard of living from the past.

Investors use this to calculate 'real' returns. If your stock portfolio went up 8% but inflation was 5%, your real return is only about 3%. Understanding this distinction is crucial for long-term wealth preservation.

Retirement planning relies heavily on inflation assumptions. If you plan to retire in 20 years, you need to know that your target monthly income of $5,000 will likely need to be $8,000 or $10,000 to buy the same basket of goods. Our calculator helps you project future costs.

We also explain the causes of inflation, such as increased money supply, rising production costs (cost-push), and high demand (demand-pull). Understanding these drivers can help you make better economic decisions.

Hyperinflation is an extreme case where prices skyrocket. While rare in developed economies, understanding historical examples (like Weimar Germany or Zimbabwe) highlights the importance of stable currency.

Use this tool to settle 'back in my day' debates, plan for future expenses, and ensure your investments are truly growing your wealth, not just keeping up with rising prices.

Key Benefits:

• Calculate purchasing power changes between any two years
• Based on official historical CPI data
• Essential for salary negotiation and career planning
• Calculate real investment returns after inflation
• Project future retirement costs
• Understand the erosion of cash savings
• Compare historical prices to modern equivalents
• Simple and educational