Inflation Calculator

In the United States, inflation has averaged roughly 3% per year over the last century. Some decades saw higher rates (like the 1970s at 7-8%), while others were lower (2010s at around 1.5-2%).

If your savings account earns less interest than the inflation rate, your money loses purchasing power over time. For example, earning 1% on savings during 3% inflation means you lose about 2% of real value each year.

Inflation rises from increased money supply, higher demand for goods, supply chain disruptions, or rising production costs. Central banks try to control it through interest rate adjustments and monetary policy.

Use a 2-3% inflation assumption for conservative planning. When projecting retirement savings or future expenses, always calculate in today's dollars to understand real purchasing power.