Inflation Calculator

Calculate how inflation affects the value of money over time and compare purchasing power between different years.

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Inflation Calculator Formula Explained

The inflation calculator uses the compound interest formula to determine how the value of money changes over time due to inflation.

  1. 1
    Enter Initial Amount
    Input the amount of money you want to analyze.
  2. 2
    Select Time Period
    Choose the start and end years for your calculation.
  3. 3
    Set Inflation Rate
    Use the default rate or input your own annual inflation rate.

How Inflation Affects the Value of Money Over Time

Understanding inflation's impact on purchasing power is crucial for long-term financial planning and investment decisions.

  • Purchasing Power Erosion
    Money buys less over time due to rising prices.
  • Investment Planning
    Consider inflation when setting long-term financial goals.
  • Historical Comparisons
    Compare prices across different time periods accurately.

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