This calculator uses historical CPI (Consumer Price Index) data to show how the purchasing power of money changes over time. Enter an amount and two years to see its equivalent value adjusted for inflation.
Inflation is the rate at which the general price level of goods and services rises, eroding purchasing power. A 3% annual inflation rate means $100 today buys only $97 worth of goods next year. Over 25 years at 3%, that $100 has the purchasing power of just $48.
Investment returns must beat inflation to grow real wealth. A savings account paying 1% while inflation runs at 3% loses purchasing power at 2% annually. This is why stock market investments targeting 7%+ nominal returns are recommended for long-term wealth building.