Inflation Calculator
Use our tool to easily **adjust past prices to today's value** based on historical inflation data.
Calculate Inflation
Enter an amount and a range of years to see its value adjusted for inflation.
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How to Use the Inflation Calculator
Our **inflation calculator** makes it easy to understand the purchasing power of money over time. Just follow these simple steps:
- **Choose the year** for the original amount you want to adjust (e.g., 1985).
- **Select the target year** to which you want to compare its value (this is often the current year).
- **Enter the original amount** in dollars.
- Click "Calculate" to instantly get its equivalent value today.
Formula Explanation
This tool uses the Consumer Price Index (CPI) to measure the change in the cost of goods over time. The formula for the calculation is:
Adjusted Amount = Original Amount × (CPI_Target ÷ CPI_Original)
For example, if you wanted to know what $100 from the year 2000 is worth today, the calculator would use the CPI values for both years to provide an accurate estimate.
Frequently Asked Questions (FAQs)
What is the purpose of an inflation calculator?
An **inflation calculator** helps you estimate the current value of past money, giving you a clear picture of how inflation has affected purchasing power over time. It's a key tool for financial planning and historical analysis.
How accurate is this tool?
This tool uses official Consumer Price Index (CPI) data from the U.S. Bureau of Labor Statistics. This makes it a reliable tool for general estimations, though it may not account for regional price differences or specific market sectors.
Can it handle future projections?
This calculator uses historical data and cannot automatically predict future inflation rates. However, if you have a projected CPI value for a future year, you can manually input it to see a hypothetical result.
Why use CPI instead of other indicators?
The CPI is a widely accepted and official measure of consumer inflation, tracking the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
How far back does CPI data go?
The CPI data used in this tool goes back to the 1970s, providing over 50 years of historical data for accurate calculations.