Our free inflation calculator shows you how the purchasing power of money changes over time due to inflation. By entering an amount, a start year, an end year, and an average inflation rate, you can instantly see what a dollar from the past is worth today — or what today’s dollar will be worth in the future.

Inflation is the gradual increase in prices over time, which erodes the purchasing power of money. Understanding inflation is critical for financial planning, salary negotiations, retirement projections, and evaluating investment returns. This inflation calculator works for both the USA and Canada.

How to Use the Inflation Calculator

1. Enter the original amount — the dollar value you want to adjust for inflation.
2. Enter the start year — the year the amount originates from.
3. Enter the end year — the target year you want to compare to.
4. Enter the average annual inflation rate — 3.5% is a common long-term average for the USA.
5. Click Calculate Inflation to see the inflation-adjusted value and purchasing power lost.

When Should You Use an Inflation Calculator?

Use the inflation calculator when evaluating salary offers to ensure your new pay keeps up with inflation. In addition, use it when projecting retirement needs — $1,000,000 today will buy significantly less in 20 years due to inflation. Furthermore, investors use it to calculate the real (inflation-adjusted) return on their investments.

Moreover, the inflation calculator is useful for historical comparisons. For example, you can see that $100 in 1990 is equivalent to over $230 in 2024 in the USA. This historical perspective helps put economic discussions in context.

How to Protect Your Money from Inflation

Inflation silently erodes the value of cash savings. Here are proven strategies to protect your purchasing power:

• Invest in stocks and real assets — Historically, stock market returns outpace inflation over long periods.
• Consider inflation-protected bonds — In the USA, TIPS (Treasury Inflation-Protected Securities) adjust with the CPI. Canada offers Real Return Bonds.
• Avoid holding too much cash long-term — Cash in low-interest accounts loses purchasing power every year inflation exceeds the interest rate.
• Negotiate salary increases tied to inflation — A raise that matches inflation keeps your real income flat. Aim for raises that exceed inflation.
• Invest in real estate — Property values and rental income tend to rise with inflation over time.

Frequently Asked Questions About the Inflation Calculator

What is the average inflation rate in the USA?

The long-term average US inflation rate is approximately 3–3.5% per year, based on the Consumer Price Index (CPI). However, inflation has varied significantly, peaking at over 9% in 2022 before returning toward 3% in 2024.

What is the average inflation rate in Canada?

Canada’s long-term average inflation rate is similarly around 2–3% annually, as measured by Statistics Canada’s Consumer Price Index. The Bank of Canada targets a 2% inflation rate.

Related Calculators

Furthermore, you might find these tools useful: Retirement Calculator — Investment Calculator — Salary Calculator

Disclaimer: Inflation rates used are estimates. Actual rates vary by country, region, and time period. Historical data is provided for educational purposes only.