Inflation Calculator

See how inflation changes the buying power of a dollar between any two years, using real U.S. CPI-U data — with the cumulative and annualized rates.

How the inflation calculator works

Inflation is the gradual rise in prices that erodes what a dollar can buy. Economists measure it with a price index — this calculator uses the Consumer Price Index for All Urban Consumers (CPI-U), the U.S. Bureau of Labor Statistics’ benchmark, which tracks the cost of a fixed basket of goods and services over time.

The adjustment is a simple ratio. To express an amount from one year in another year’s dollars, multiply it by the ratio of the two years’ index values: amount × CPI(end) ÷ CPI(start). If prices doubled between the two years, the index doubled, and so does the equivalent amount.

The calculator also reports two rates. The cumulative change is the total percentage prices moved across the whole span. The annualized rate is the steady compound rate that would produce that same change year over year — the figure you’d compare against a savings yield or raise to see whether you’re keeping ahead of inflation.

How to use this calculator

Enter the dollar amount you want to adjust.
Choose the starting year the amount is measured in.
Choose the ending year you want to express it in.
Press Calculate to see the equivalent value, the cumulative change, and the annualized inflation rate.

Key terms

CPI-U: The Consumer Price Index for All Urban Consumers — the BLS’s main measure of the average price of a basket of consumer goods and services.
Purchasing power: How much a fixed amount of money can actually buy. Inflation reduces purchasing power; the same dollars buy less over time.
Annualized rate: The constant yearly rate that, compounded over the period, equals the total price change — useful for comparing against interest or wage growth.

Tips

Compare the annualized inflation rate to your savings APY: if your yield is lower, your cash is losing real value even as the balance grows.
CPI is a national average — your personal inflation rate can be higher or lower depending on housing, healthcare, and other heavily weighted categories.
Use inflation-adjusted (real) figures when comparing salaries, prices, or returns across many years; nominal numbers overstate growth.

Frequently asked questions

How is the inflation rate calculated?

It compares a price index at two points in time. The cumulative change is CPI(end) ÷ CPI(start) − 1. The annualized rate is the compound rate that turns the starting index into the ending one over the number of years between them — the geometric average, not a simple average.

What is CPI-U and who publishes it?

CPI-U is the Consumer Price Index for All Urban Consumers, published monthly by the U.S. Bureau of Labor Statistics. It measures the average change over time in the prices urban households pay for a representative basket of goods and services. This calculator uses the annual-average figures.

Why doesn’t this match my personal experience of inflation?

CPI is a national average across a fixed basket, so it can differ from what you feel. If a large share of your budget goes to categories rising faster than average — like rent, healthcare, or college — your personal inflation rate will be higher than the headline CPI figure.

What years does this calculator cover?

It currently uses CPI-U annual averages from 2000 through the most recent confirmed year. The underlying data file is refreshed each January when the BLS publishes the prior year’s annual average, and it can be extended back to 1913 if older comparisons are needed.

Is this nominal or real value?

The adjusted figure is a nominal-to-nominal conversion: it tells you the number of dollars in the end year with the same buying power as the original amount in the start year. To compare growth in “real” terms, you’d subtract inflation from a nominal return or wage increase.

How do I use this to check if my raise kept up with inflation?

Enter your old salary, the year you earned it, and the current year. The equivalent value is what that salary would need to be today just to match its old buying power. If your actual pay is higher, you gained ground in real terms; if it’s lower, you effectively took a pay cut.

Planning further? Try the compound interest calculator or the savings goal calculator.

Compound Interest Calculator

See how your savings grow over time with compound interest and regular monthly contributions.

Savings Goal Calculator

Plan how long it will take to reach a savings goal and how much to save each month to get there on time.