Inflation Calculator

The calculator uses the Consumer Price Index (CPI) published by the Bureau of Labor Statistics to measure how the general price level has changed over time. It divides the CPI of your target year by the CPI of your starting year, then multiplies by your dollar amount to show equivalent purchasing power.

Official CPI data from the Bureau of Labor Statistics goes back to 1913, so you can calculate inflation for any year from 1913 to the present. Earlier estimates exist but become less reliable as you go further back in history.

Inflation gives context to historical prices, wages, and costs. Without adjusting for inflation, a $5,000 salary in 1950 sounds tiny, but it had the purchasing power of about $63,000 today—completely changing how you understand that figure.

No, different categories experience different inflation rates. Healthcare and education have inflated much faster than the overall CPI, while technology and clothing have actually gotten cheaper in many cases. The CPI represents an average across a basket of goods.

Inflation is driven by factors like monetary policy, oil prices, economic growth, wages, and global events. The 1970s saw high inflation due to oil shocks and loose monetary policy, while recent decades have had more stable, lower inflation until the 2020s surge.