Finance

CPI Inflation Calculator

Calculate how inflation erodes purchasing power over time using CPI values or inflation rates.

Calculation Method

Amount ($)

Annual Inflation Rate (%)

Number of Years

Formulas:
Using Rate: Future Price = Amount × (1 + rate)^years
Using CPI: Adjusted = Amount × (End CPI / Start CPI)
Purchasing Power = Amount / (1 + rate)^years

Understanding CPI and Inflation

The Consumer Price Index (CPI) measures the average change in prices paid by urban consumers for a basket of goods and services. It's the primary measure used to calculate inflation rates in the US.

Historical US Inflation

Period	Avg Annual Inflation
1920s	-1.1%
1970s	7.4%
2000s	2.6%
2020-2024	~5.0%