Inflation Calculator

What this measures

Inflation is the rate at which the general price level of goods and services is rising — or equivalently, the rate at which your money loses purchasing power. Central banks track this via the Consumer Price Index (CPI), a basket of goods and services sampled monthly.

This calculator pulls real CPI data from the OECD and FRED (US Federal Reserve). For example, $100 in 1990 had the purchasing power of about $240 in 2024 — an average inflation of ~2.6% per year.

The formula

Adjusted = Original × (CPI_target_year / CPI_base_year)

Why this matters for investing

Nominal returns ≠ real returns. If your portfolio grew 8% a year but inflation was 5%, your real return was only 3%. That's the number that actually matters for retirement planning.

Use this calculator to:

• Convert past prices/salaries to today's dollars
• Estimate what a future expense (college, retirement) will cost in nominal terms
• Compare investment returns net of inflation
• Understand cross-country purchasing power differences

Country-specific notes

Inflation rates vary dramatically by country. Brazil and Turkey have averaged 5-10%+ in recent years; Japan ~0-1%; US ~3%; India ~6%; Germany ~2%. The calculator handles this — just pick your country.