Find out what money was worth in the past or project future purchasing power using CPI-based inflation rates.
Enter an amount and select a "From Year" and "To Year" to instantly see what that money is worth in today's dollars (or future dollars). Toggle between Past → Present mode to see historical purchasing power changes, or Present → Future mode to estimate how much you'll need tomorrow to match today's purchasing power.
Adjust the annual inflation rate to model different scenarios. The default of 3.1% reflects the long-run US historical average. Using the Fed's 2% target gives a more optimistic projection; using 4%+ reflects periods of elevated inflation like 2021–2023.
The Consumer Price Index (CPI) is the primary measure of inflation in the United States, published monthly by the Bureau of Labor Statistics (BLS). The CPI tracks the price of a fixed basket of goods and services purchased by typical urban consumers.
Understanding historical inflation helps contextualize your projections. Here are average annual inflation rates by decade based on CPI data:
| Decade | Avg Annual Inflation | Cumulative | $1,000 became |
|---|---|---|---|
| 1970s | 7.4% | +103% | $2,030 |
| 1980s | 5.1% | +64% | $1,640 |
| 1990s | 3.0% | +34% | $1,340 |
| 2000s | 2.6% | +29% | $1,290 |
| 2010s | 1.8% | +20% | $1,200 |
| 2020–2025 | 4.8% | +27% | $1,270 |
The long-run US average is approximately 3.1% per year since 1913. From 2000–2020 the average was around 2.2%. The 2021–2023 inflation surge pushed the recent average higher. The Federal Reserve targets 2% annual inflation as its long-term goal.
If your savings account earns less than the inflation rate, your money loses purchasing power over time even though the dollar amount grows. For example, $10,000 in a 0.5% savings account during a 3% inflation year effectively loses about 2.5% in real purchasing power annually. This is why investing in assets that historically outpace inflation — like stocks or real estate — is important for long-term wealth building.
Inflation is caused by demand-pull factors (too much money chasing too few goods), cost-push factors (rising production costs passed to consumers), supply chain disruptions, energy price shocks, or excessive money supply growth. The 2021–2023 inflation surge was driven by pandemic supply chain disruptions, energy price spikes from the Ukraine conflict, and stimulus-fueled demand.