Inflation Calculator

Compare purchasing power of money across years | Calculate future or past value with inflation

Future Value
$0.00
Adjusted for inflation
๐Ÿ“– What does this mean?
With 5.5% annual inflation, your money's purchasing power decreases significantly over time.
๐Ÿ“Š Formula: FV = PV ร— (1 + r)^n | PV = FV / (1 + r)^n

๐Ÿ“– How to Use This Inflation Calculator

1
Select your currency - Choose from 100+ world currencies with country flags.
2
Enter the amount - Input the amount of money you want to compare.
3
Set start and end years - Choose the years you want to compare.
4
Enter inflation rate - Input the average annual inflation rate.
5
Choose direction - Future Value or Past Value.
6
Click "Calculate" - Get instant results.

๐Ÿ“š What is Inflation?

Inflation is the rate at which the general level of prices for goods and services rises, causing purchasing power to fall. When inflation rises, each unit of currency buys fewer goods and services.

๐Ÿงฎ Inflation Calculation Formulas

Future Value: FV = PV ร— (1 + r)^n
Past Value: PV = FV / (1 + r)^n

๐Ÿ’ก Why Inflation Matters

โ“ Frequently Asked Questions

What causes inflation?
Inflation is caused by demand-pull factors, cost-push factors, and built-in inflation. Central banks manage inflation through monetary policy.
What is a normal inflation rate?
Most central banks target 2% annual inflation as ideal for economic growth.
How is inflation measured?
Inflation is typically measured using the Consumer Price Index (CPI), which tracks the average price change of a basket of common goods and services.
Nominal vs real returns?
Nominal returns are actual percentage gain. Real returns are nominal returns minus inflation rate.