1
Enter Your Amount
Input the dollar amount you want to analyze for purchasing power changes over time.
Inflation Calculator
Calculate purchasing power over time
$
2016 2026 (0 years at 3% annual inflation)
Equivalent Value Today$0.00
Purchasing Power Loss$0.00
Percentage Change0.00%
$0.00 in 2016 has the same buying power as $0.00 in 2026.
User Guide: Calculate Purchasing Power
2
Select Time Period
Choose start and end years to calculate inflation impact over your desired time frame.
3
View Adjusted Value
See the inflation-adjusted value and understand how purchasing power has changed.
Frequently Asked Questions
Inflation is the rate at which the general level of prices for goods and services rises over time, decreasing purchasing power. If inflation is 3%, something that costs $100 today will cost $103 next year. This means money sitting idle loses value over time, which is why investing is important for preserving wealth.
Inflation is caused by various factors: increased money supply (when central banks print more money), demand-pull inflation (when demand exceeds supply), cost-push inflation (when production costs rise), and built-in inflation (when workers expect higher wages). Central banks use interest rates to try to control inflation.
To protect against inflation: invest in assets that historically outpace inflation (stocks, real estate), consider Treasury Inflation-Protected Securities (TIPS), diversify your portfolio, avoid holding too much cash, and invest in yourself through education and skills that increase earning potential.
Understanding Inflation Over Time
Inflation silently erodes the value of money over time. What cost $100 in 2000 would cost approximately $180 in 2024 due to cumulative inflation. Understanding this effect is crucial for retirement planning, salary negotiations, and investment decisions.
Our inflation calculator uses historical average rates by region to estimate purchasing power changes. While actual inflation varies year to year, these averages provide useful estimates for long-term financial planning.