What Is the US Inflation Calculator?
This tool calculates the equivalent purchasing power of any US dollar amount between 1913 and 2025 using annual average CPI-U (Consumer Price Index for All Urban Consumers) data from the Bureau of Labor Statistics. It answers questions like: "What was $1,000 in 1990 worth in today's dollars?" or "What will today's $50,000 salary feel like in 20 years?"
How Inflation Is Calculated
Adjusted = Amount × (CPI_target / CPI_source)
Data source: US Bureau of Labor Statistics CPI-U (All Urban Consumers, Not Seasonally Adjusted)
US Historical Inflation Highlights
- 1913–1920: WWI-era inflation peaked at 20%+ in 1917–1920
- 1929–1933: Great Depression — deflation dropped prices 10%/year
- 1940s: WWII spending pushed inflation to 10%+ in 1942, 1947
- 1970s–1980: Oil shocks drove inflation to 13.5% in 1980 (historic peacetime high)
- 1983–2020: "Great Moderation" — inflation averaged 2.5–3.5%
- 2021–2022: Post-COVID supply disruptions hit 9.1% in June 2022 (40-year high)
- 2023–2025: Fed rate hikes brought inflation back toward 2.9–3.2%
Benefits of Using an Inflation Calculator
- Reveals real purchasing power loss: $100 in 1990 required $236 by 2024 to match the same purchasing power — this calculator makes that visible instantly.
- Uses official BLS CPI-U data: All calculations use actual Bureau of Labor Statistics Consumer Price Index data from 1913 through 2025, not estimates.
- Retirement and salary planning: Understand whether a raise is keeping pace with inflation, or how much a pension needs to be worth in today's dollars.
- Historical context on any period: Compare inflation across decades — from the 1970s oil shocks to the 2022 post-COVID spike — to understand economic cycles.
Frequently Asked Questions
What is inflation?
Inflation is the rate at which prices rise, reducing purchasing power. 3% annual inflation means $100 today buys the same as $97 next year. The BLS measures it using the CPI-U basket of ~94,000 goods and services tracked across 87 US urban areas.
How is US inflation measured?
Via the Consumer Price Index (CPI-U) from the Bureau of Labor Statistics. Major categories: housing (33%), transportation (17%), food (14%), medical care (7%), recreation (6%). Updated monthly. The Fed's preferred measure is PCE (Personal Consumption Expenditures), which has a slightly different methodology.
What was the highest inflation in US history?
13.5% in 1980, driven by 1970s oil shocks and loose monetary policy. Fed Chair Paul Volcker raised rates to 20%+ in 1981 to break it, causing recession but restoring stability by 1983. More recently, June 2022 hit 9.1% — a 40-year high — before rate hikes brought it back down by 2024.
How does inflation affect savings?
Inflation erodes savings held in low-interest accounts. With 3% inflation and a 0.5% savings account, your real purchasing power drops 2.5% per year — nearly halving in 28 years. High-yield savings accounts (4.5–5.5% in 2026), I-bonds, TIPS, and stocks preserve or grow real purchasing power.
What are TIPS and I-bonds?
TIPS: US Treasury bonds whose principal adjusts with CPI. $10,000 in TIPS at 5% inflation grows to $10,500 principal. I-bonds: savings bonds with a rate = fixed rate + inflation adjustment, updated every 6 months. Both protect against inflation; I-bonds are limited to $10,000/person/year.
What is the Federal Reserve's inflation target?
2% annual inflation as measured by PCE. Too-high inflation erodes purchasing power; too-low (deflation) causes economic stagnation. The Fed adjusts the federal funds rate — raising rates slows borrowing and spending, reducing inflation. The 2022–2023 rate hiking cycle from 0.25% to 5.25–5.5% successfully brought inflation back toward 3% by 2024.
How does inflation affect retirement?
At 3% annual inflation, prices double roughly every 24 years. Retiring at 65 with $50,000/year expenses means needing ~$100,000/year by age 89 to maintain the same lifestyle. This is why maintaining some stock exposure in retirement is important — to outpace inflation. Social Security includes annual COLA adjustments to partially compensate.
What is the Rule of 72 for inflation?
Divide 72 by the inflation rate to find how many years it takes for prices to double. At 3% inflation: 72 ÷ 3 = 24 years for prices to double. At 7%: 10 years. This mental shortcut helps quickly grasp the long-term impact of inflation on purchasing power without a calculator.