Inflation Calculator

How to Use the Inflation Calculator

This inflation calculator uses historical Consumer Price Index (CPI) data published by the U.S. Bureau of Labor Statistics (BLS) to adjust dollar amounts for inflation across any two years from 1913 to 2025. Enter a dollar amount, choose your starting year and ending year, and instantly see the inflation-adjusted value along with the cumulative inflation rate and average annual inflation rate.

For example, $100 in 1990 had the same purchasing power as roughly $230 in 2024, meaning prices more than doubled over those 34 years at an average annual inflation rate of about 2.4%. Conversely, you can run the calculation in reverse: $100 in 2024 was worth only about $43 in 1990 dollars, illustrating how inflation erodes purchasing power over time.

The formula used is: $\text{Adjusted} = \text{Original} \times \dfrac{\text{CPI}_\text{target}}{\text{CPI}_\text{base}}$. The CPI measures the average change in prices paid by urban consumers for a basket of goods and services including food, housing, apparel, transportation, medical care, and recreation.

Understanding inflation is essential for personal finance decisions. When evaluating salary increases, compare the raise to the inflation rate. A 3% raise in a 4% inflation year is actually a 1% pay cut in real terms. Similarly, when comparing historical prices or wages, always adjust for inflation to make meaningful comparisons. A house that cost $50,000 in 1975 would cost over $280,000 in 2025 dollars due to inflation alone.

The 2025 CPI figure is an estimate based on the most recent available data. For precise academic or legal calculations, use the official BLS CPI Inflation Calculator which is updated monthly with the latest government data.