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Inflation Calculator: U.S. CPI and Dollar Value 1913-2026

Use this calculator to see how your money's value changed over time — and how much it could change in the future.

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Alieza Durana is a former investing writer at NerdWallet. She has over a decade of journalism experience covering housing, labor, gender and public policy issues for the Eviction Lab, The Fuller Project for International Reporting, New America and Slate. Her work has appeared in USA Today, The Washington Post, The Atlantic and Harvard Business Review. She is based in St. George, Utah.

What is inflation?

Inflation measures the average change in prices for goods and services over time. In other words, inflation represents an average increase in prices. Deflation is the opposite — it represents an average decrease in prices.

Inflation matters because it affects the cost of things consumers buy. A steady, predictable inflation rate is ideal. When inflation is too high, goods and services cost more and consumers spend less. The inflation rate for the last 12 months (ending in January 2026) is 2.4%

Current inflation rate: 2.4%

CPI for All Urban Consumers (CPI-U): 325.252

» Want to combat inflation? Find a financial advisor and start investing

Average inflation rate

The Federal Reserve's target inflation rate is 2%.

According to the Federal Reserve, a 2% inflation rate aligns most with the system's mandate to maintain maximum employment and price stability

How to calculate the inflation rate

To calculate the inflation rate, you’ll need a start date, an end date, and a chart of the Consumer Price Index, a measure of average changes in prices over time issued by the U.S. Bureau of Labor Statistics.

Subtract the CPI of the start date from the CPI of the end date.

Divide that number by the CPI of the start date.

Multiply this number by 100 and add a percent sign, and there’s the inflation rate for that period.

Example:

1990 CPI = 130.7

2010 CPI = 218.056

Equation: ((218.056-130.7)/130.7) x 100

So, we have 66.837% inflation between 1990 and 2010.

To see how inflation affects the value of $1, first divide the inflation rate by 100. Then, multiply that number by $1 (or any starting dollar amount you wish). Then, add that number to your dollar amount.

Equation:

((66.837/100) x 1) + $1 = $1.67

((66.837/100) x 5) + $5 = $8.34

In this instance, $1 in 1990 had a purchasing power of $1.67 in 2010, and $5 in 1990 had a purchasing power of $8.34 in 2010.

Inflation example

Say a movie ticket costs $5 in 2000, and in 2025, that ticket costs $20. This doesn't mean $5 would grow to $20. It means your $5 — if you stuck it under a mattress for 25 years — would only buy you one-fourth of a ticket in 2025.

If the amount of money you have or make stays the same, it will buy you less as time goes on. That’s due to inflation.

If you want the money you save to keep pace with inflation — or better yet, outgrow it — you need it to gather more than dust while you pass the time.

Investing allows you to accumulate more money with the dollars you save. For context, the stock market has historically posted an average annual return of around 10%, or about 7% after inflation.

If your investments earn a 6% average annual return, a fairly conservative goal, $5 invested in 2000 could be worth nearly $20 today. Invest a larger amount — say, $10,000 — and it will start to snowball: $10,000 invested in 2000 could be worth around $38,000 today.

Keep in mind that investing in the stock market is for long-term goals that are at least five years away. If you need your money before that, consider short-term investments.

» How to find a financial advisor who can help you invest strategically

What causes inflation?

Inflation in general is often caused by one or more of the following factors:

Supply-demand imbalance

A phenomenon called demand-pull inflation occurs when demand for products or services exceeds supply, making prices increase. For instance, if two people wanted to buy a car, but the dealership only had one left, the potential buyers would vie to be the highest bidder.

The car may not be worth as much as the result of the bidding war, but because of the demand, the dealership is able to get a higher price.

Raw material price increases

When the cost of producing goods and services increases, it can trigger something called cost-push inflation. For example, an increase in oil prices can create a ripple effect where other industries feel large-scale price increases and inflation.

Oil and other petroleum products are used as ingredients in many other goods and services. If the price of oil increases, so does the cost of plastics, asphalt and plane tickets.

Another example is the housing market. Typically, if homes are in demand, housing prices will rise.

This demand in the housing industry creates demand for related products and services, such as lumber and contracting, which causes those prices to go up, too.

» Calculate how long your retirement savings might last

Consumer expectations

It may sound outlandish, but people’s expectations about inflation can actually impact inflation. If you expect inflation to continue rising, you might ask your employer for a raise. You might also buy goods sooner rather than later, because you expect the price to increase in the future. Higher wages and higher demand force businesses to raise their prices, resulting in higher inflation.

High money supply

Inflation can also be caused by additional money in the money supply. Central banks can increase the amount of money in circulation by, for example, issuing stimulus payments.

The hope in adding more money to an economic system is that more people will spend and borrow, thus spurring economic growth. But if most people don’t spend that extra money, then businesses won’t be able to sell their products. If products don’t sell, business owners may be forced to raise their prices on the products that do sell in order to stay in business.

And as money loses its value, this creates a cycle where inflation continues to rise.

Can inflation be good?

Many economists think that low and predictable inflation is actually a good thing. It helps keep an economy running smoothly.

And even high inflation has a few silver linings. Inflation can deter new construction, making existing homes more valuable. If you have a fixed-rate mortgage with an interest rate that’s lower than the rate of inflation, the value of your debt decreases. Some stock market sectors, such as energy stocks and consumer staples, can also benefit from inflation.

» This quiz can help you see if it's time to get a financial advisor