What inflation rate should I use?

3% approximates the Federal Reserve's long-run target, but actual CPI inflation has varied significantly year to year — check current CPI data from the Bureau of Labor Statistics for historical rates.

Does this predict future inflation?

No, it's a projection based on whatever constant rate you enter; real-world inflation fluctuates and can't be predicted with certainty.

Inflation Calculator

See how inflation affects the future value and purchasing power of money.

Amount ($)

Average annual inflation rate (%)

Number of years

Equivalent future amount Enter your numbers above

Default 3% approximates the U.S. Federal Reserve's long-run inflation target; actual CPI inflation varies year to year.

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How inflation is calculated

This calculator uses the compound growth formula (Future Value = Amount × (1 + rate)^years) to show how much money you'd need in the future to match today's purchasing power, or conversely, what a future dollar amount is worth in today's terms, at a constant assumed inflation rate.

Frequently asked questions

What inflation rate should I use?: 3% approximates the Federal Reserve's long-run target, but actual CPI inflation has varied significantly year to year — check current CPI data from the Bureau of Labor Statistics for historical rates.
Does this predict future inflation?: No, it's a projection based on whatever constant rate you enter; real-world inflation fluctuates and can't be predicted with certainty.