Enter a dollar amount, the start year, and the end year. The calculator shows what the equivalent purchasing power is in the target year, accounting for cumulative inflation.

This helps you understand how the value of money changes over time. For example, what $50,000 in the year 2000 would be equivalent to in today's dollars — or what today's $100,000 salary will feel like in 20 years.

Inflation is the general increase in prices over time, which means each dollar buys less in the future than it does today. Understanding inflation is essential for long-term financial planning, retirement projections, and salary negotiations.

Historical Inflation in the United States

The long-term average annual inflation rate in the U.S. is approximately 3.0-3.5% per year. However, inflation has varied dramatically by era: it reached 13.5% in 1980, stayed below 2% throughout the 2010s, spiked to 9.1% in June 2022, and has since moderated to around 2.5-3%.

The Rule of 72 for Inflation

Just as you can use the Rule of 72 for investment growth, you can apply it to inflation: divide 72 by the inflation rate to see how many years it takes for prices to double. At 3% inflation, prices double roughly every 24 years. At 7%, prices double in about 10 years — meaning today's $100,000 salary feels like $50,000 in a decade.

Inflation and Your Salary

If your salary increases by 2% annually but inflation averages 3%, you're actually losing 1% of purchasing power each year. Over a decade, that compounds to a real income decline of nearly 10%. This is why negotiating raises that at least match inflation is crucial for maintaining your standard of living.