Inflation Calculator
Inflation-adjusted values
How It Works
Free inflation calculator to determine the buying power of a dollar over time based on historical or projected inflation data.
Inflation is the general increase in prices and the decline in purchasing power of money over time. The average annual inflation rate in the U.S. has been around 3.2% over the past century, meaning that what costs $100 today would have cost about $5 in 1920.
Inflation erodes the real value of savings and fixed-income investments. For example, at 3% annual inflation, $1 million today will be worth only about $744,000 in 10 years. This is why it is important to invest in assets that have the potential to outpace inflation.
Treasury Inflation-Protected Securities (TIPS) are U.S. government bonds that adjust their principal value with inflation, providing a hedge against rising prices. Other assets traditionally used as inflation hedges include real estate, commodities (such as gold), and stocks of companies with pricing power.
Results
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Quick Tips
- • Results update automatically as you type
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- • Press Enter to calculate
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