Calculate how inflation erodes purchasing power over time using the formula Adjusted Value = Present Value à (1 + inflation rate)^years. Enter an amount, annual inflation rate, and number of years to see what your money will be worth in the future or what a past amount equals in today's dollars.
â Frequently Asked Questions
Historical average inflation in the US is about 3% per year, though it varies significantly by decade. Recent years have seen higher or lower rates depending on economic conditions.
Inflation reduces the purchasing power of money over time. $100 today buys more than $100 in 10 years if inflation is positive, meaning your savings need to grow faster than inflation to retain value.