Inflation Calculator
See how inflation has changed the value of your money using real CPI data.
Inflation Calculator
$1,000 in 2000 equals
$1,926
in 2026 · 92.63% total inflation over 26 years
Summary
Year-by-Year
| Year | Equivalent Value | Cumulative Inflation |
|---|---|---|
| 2001 | $1,034 | 3.4% |
| 2002 | $1,063 | 6.3% |
| 2003 | $1,080 | 8% |
| 2004 | $1,105 | 10.48% |
| 2005 | $1,135 | 13.46% |
| 2006 | $1,173 | 17.32% |
| 2007 | $1,211 | 21.07% |
| 2008 | $1,245 | 24.46% |
| 2009 | $1,292 | 29.19% |
| 2010 | $1,287 | 28.68% |
| 2011 | $1,307 | 30.74% |
| 2012 | $1,349 | 34.92% |
| 2013 | $1,378 | 37.75% |
| 2014 | $1,398 | 39.82% |
| 2015 | $1,421 | 42.06% |
| 2016 | $1,422 | 42.2% |
| 2017 | $1,440 | 44.05% |
| 2018 | $1,471 | 47.07% |
| 2019 | $1,506 | 50.6% |
| 2020 | $1,533 | 53.31% |
| 2021 | $1,552 | 55.15% |
| 2022 | $1,624 | 62.45% |
| 2023 | $1,754 | 75.44% |
| 2024 | $1,826 | 82.63% |
| 2025 | $1,879 | 87.93% |
| 2026 | $1,926 | 92.63% |
Note
Uses CPI-U data from the Bureau of Labor Statistics. Recent years use preliminary estimates. Actual inflation varies by category (housing, food, healthcare, etc.).
How Inflation Erodes Your Purchasing Power
Inflation is the silent tax on your savings. When prices rise 3% annually, your dollar buys 3% less each year. Over 25 years at 3% average inflation, $100 loses nearly half its purchasing power — it would only buy what $47 could have bought originally. This is why leaving large sums in a checking account earning 0.01% is one of the costliest financial mistakes.
The Bureau of Labor Statistics measures inflation using the Consumer Price Index for All Urban Consumers (CPI-U), which tracks the average change in prices for a basket of goods and services including food, housing, transportation, medical care, and education. Our calculator uses actual CPI-U data from 1990 through 2026.
US Inflation: A Historical Perspective
From 1990 to 2020, annual inflation averaged roughly 2.5% — comfortably within the Federal Reserve's target range. Then 2021–2022 brought a surge: pandemic stimulus, supply chain disruptions, and energy shocks pushed CPI inflation above 9% by mid-2022, the highest in 40 years. The Fed responded with aggressive rate hikes, bringing inflation down to around 3–4% by 2024–2025 and closer to the 2% target by 2026.
| Period | Avg Annual CPI | Key Driver |
|---|---|---|
| 1990–2000 | ~3.0% | Steady expansion, Gulf War oil spike |
| 2000–2010 | ~2.6% | Dot-com bust, housing bubble, 2008 crisis |
| 2010–2020 | ~1.8% | Slow recovery, low rates, stable prices |
| 2021–2022 | ~7.5% | Pandemic stimulus, supply chains, energy |
| 2023–2026 | ~3.2% | Fed tightening, gradual normalization |
Why You Need to Beat Inflation
Any savings or investment returning less than the inflation rate is actually losing real value. A bank savings account earning 0.5% while inflation runs at 3% means you lose 2.5% of purchasing power annually. To protect your wealth, you need investments that outpace inflation — historically, the stock market has returned roughly 7% after inflation over long periods.
Inflation-Protected Investment Options
- I Bonds — US savings bonds that adjust every 6 months based on CPI. Capped at $10,000/year per person, but guaranteed to keep pace with inflation.
- TIPS (Treasury Inflation-Protected Securities) — Government bonds whose principal adjusts with CPI. Available in 5, 10, and 30-year maturities.
- High-yield savings accounts — Currently offering 4–5% APY, these beat inflation while keeping your cash liquid.
- Stocks & real estate — Over the long term, equities and property tend to outpace inflation significantly, though with higher short-term volatility.
How to Use This Calculator
Enter any dollar amount and select two years between 1990 and 2026. The calculator will show you the equivalent value adjusted for inflation using actual CPI-U data. You can also switch to "Custom Rate" mode to project future purchasing power at any annual inflation rate you choose.
Frequently Asked Questions
Why does inflation feel higher than the official CPI number?
CPI measures an average basket of goods. Your personal inflation rate depends on what you actually buy. If you spend heavily on housing, healthcare, or college tuition — categories that have outpaced overall CPI for years — inflation feels worse than the headline number. Groceries and gas are also more noticeable because you buy them frequently.
Is 2-3% inflation normal?
Yes. The Federal Reserve targets 2% annual inflation as its long-run goal, viewing it as a sign of a healthy economy. Moderate inflation encourages spending and investment. Deflation (falling prices) sounds appealing but actually signals economic distress and can trigger recessions.