Inflation & Purchasing Power Calculator for 2026

Calculate how inflation erodes your purchasing power over time. See what your money was worth in the past and project future value with custom inflation rates.

Mathematical Audit

Inflation & Purchasing Power Formula

Purchasing power measures how much a unit of currency can buy. Inflation reduces purchasing power over time. This calculator uses compound inflation to project dollar values across years and compares salary growth against inflation to determine real income changes.

Adjusted Amount = Amount × (1 + Inflation Rate)^Years
Equivalent Today = Amount ÷ (1 + Inflation Rate)^Years
Purchasing Power Loss = Amount − Equivalent Today
Cumulative Inflation = ((1 + Rate)^Years − 1) × 100%
Salary After Inflation = Salary × (1 + Growth Rate)^Years ÷ (1 + Inflation Rate)^Years
Real Salary Growth = (Salary After Inflation − Salary) ÷ Salary × 100%
Salary Gap = Salary × (1 + Growth)^Years − Salary × (1 + Inflation)^Years

The US average annual inflation rate from 2000–2025 has been approximately 2.5–3%. The current 2026 inflation rate is approximately 2.4–3.8% depending on the measure used. CPI data is published monthly by the Bureau of Labor Statistics.

Operational Guide

How to Use the Inflation & Purchasing Power Calculator

1

Enter your dollar amount

Input the amount of money you want to analyze for purchasing power changes.

2

Set start and end years

Choose the time period. Data is available from 1913 to 2026 using CPI-based rates.

3

Set inflation rate

Use the default rate or toggle custom rate to set your own annual inflation assumption.

4

Add salary comparison (optional)

Enter your current salary and expected annual raise percentage to see if your income keeps pace with inflation.

5

Review purchasing power analysis

See equivalent dollar values, cumulative inflation, purchasing power loss, and salary gap analysis.

Real-World Scenario Example

"A worker wants to know what $1,000 from 2020 is worth in 2026 dollars with 3.2% average inflation, and whether their $50,000 salary with 3% annual raises has kept pace."

Inputs

amount:1000
startYear:2020
endYear:2026
annualInflationRate:3.2
salary:50000
salaryGrowthRate:3

Result

Adjusted Amount: $1,208. Purchasing Power Loss: 17.2%. Salary in real terms: $49,069. Real salary growth: -1.9%. Your raises have not kept up with inflation.

Important Disclaimer

This calculator uses estimated inflation rates for projection purposes. Historical CPI data is sourced from the Bureau of Labor Statistics. Future inflation projections are estimates and actual inflation may vary. This is not financial advice.

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Sources & References

Bureau of Labor Statistics: CPI Inflation Calculator

https://www.bls.gov/data/inflation_calculator.htm

US Inflation Calculator: Consumer Price Index Data from 1913 to 2026

https://www.usinflationcalculator.com/inflation/consumer-price-index-and-annual-percent-changes-from-1913-to-2008/