TimeValue

Inflation Calculator

Convert money between years using an average inflation rate — see what yesterday's dollars are worth today.

Amount in original year

Average annual inflation

From year

To year

Equivalent value in 2026

$2,150

115% cumulative change

$1,000 in 2026 buys: $465 of 1995 goods
Years compared: 31

What you entered

Amount: $1,000From year: 1995To year: 2026Annual inflation: 2.5%

1
Years between the two dates
n = 2026 − 1995= 31 years
2
Cumulative inflation factor
(1 + 2.5%)^31= 2.1500
3
Equivalent value in 2026
$1,000.00 × 2.1500= $2,150.01
4
What $1,000.00 in 2026 could buy in 1995
$1,000.00 ÷ 2.1500= $465.11

Result

Equivalent value in 2026: $2,150

$1,000 in 1995 has the same buying power as $2,150 in 2026 — a 115% cumulative change at 2.5% average annual inflation.

What $1,000 today will cost in future years

Each cell is $1,000 grown forward at the annual inflation rate in the column heading. Read it as the amount you would need later to buy what $1,000 buys now.

Years ahead	At 2%	At 3%	At 4%	At 5%
1 year	$1,020.00	$1,030.00	$1,040.00	$1,050.00
3 years	$1,061.21	$1,092.73	$1,124.86	$1,157.63
5 years	$1,104.08	$1,159.27	$1,216.65	$1,276.28
10 years	$1,218.99	$1,343.92	$1,480.24	$1,628.89
15 years	$1,345.87	$1,557.97	$1,800.94	$2,078.93
20 years	$1,485.95	$1,806.11	$2,191.12	$2,653.30
25 years	$1,640.61	$2,093.78	$2,665.84	$3,386.35
30 years	$1,811.36	$2,427.26	$3,243.40	$4,321.94

At 3%, prices roughly double every 24 years - which is the Rule of 72 applied to inflation rather than returns. The gap between columns is the part that catches people out: over 30 years, 2% inflation needs $1,811 while 5% needs $4,322, so a couple of percentage points more than doubles the damage. This is exactly why cash held long-term loses purchasing power even when the balance never falls. The calculator applies one constant rate, whereas real inflation varies year to year and hits different baskets at different speeds, so treat any long projection as a scenario rather than a prediction.

Why inflation matters

At 3% annual inflation, money loses about half its purchasing power every 24 years. Long-term savings need to outpace inflation just to stand still.

How inflation is measured

The Consumer Price Index (CPI) tracks the average price change for a basket of goods and services — housing, food, transportation, healthcare, education. The Bureau of Labor Statistics publishes CPI monthly. 'Core inflation' excludes volatile food and energy prices to show the underlying trend.

Inflation and your savings strategy

If your savings account earns 2% and inflation is 3%, your money is losing purchasing power despite growing in nominal terms. To actually get richer, your investments must outpace inflation. The S&P 500 has returned about 7% after inflation historically, while bonds return 1-3% real. Cash under the mattress loses ~3% per year in purchasing power.

Frequently asked questions

What is the average inflation rate?

The US average has been about 3.2% per year since 1913. From 2000-2019, it averaged about 2.2%. During 2021-2023, it spiked to 5-9% before cooling back to 3-4%. For long-term projections, 3% is the most commonly used estimate.

How much was $100 worth 20 years ago?

At 3% average inflation, $100 from 2006 has the same buying power as about $180 today. Alternatively, $100 today buys what $55 bought 20 years ago. The formula: future value = amount × (1 + inflation rate)^years.

How does inflation affect retirement savings?

If you need $50,000/year in today's dollars for retirement in 25 years, you'll actually need about $105,000/year at 3% inflation. Your retirement target should be roughly double what you'd need today. That's why financial planners use 'real' (inflation-adjusted) returns rather than nominal returns.