Inflation Calculator
Calculate the changing value of the US Dollar over time. See how purchasing power has shifted from 1920 to 2026.
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Equivalent Value in 2024
Cumulative Inflation
+281.3%
Avg Annual Rate
3.09%
$100 in 1980 has the same purchasing power as $381.28 in 2024.
Understanding Inflation
Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly.
How is it calculated?
This calculator uses the Consumer Price Index (CPI) data provided by the US Bureau of Labor Statistics. The formula used is:Value in Target Year = Value in Base Year × (CPI in Target Year / CPI in Base Year)
Frequently Asked Questions
What is the Consumer Price Index (CPI)?
The CPI is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them.
Why does purchasing power decrease?
As inflation causes prices to rise, a single unit of currency loses value as it buys fewer goods and services. This loss of purchasing power impacts the general cost of living for the common public which ultimately leads to a deceleration in economic growth.
Is a little inflation good?
Most economists believe that a small, predictable amount of inflation is good for the economy. It encourages spending and investing rather than hoarding cash, which would lose value over time. The US Federal Reserve targets an inflation rate of 2%.