See how inflation affects purchasing power. Find out what a dollar was worth in any year since 1913.
$100.00 in 2020 equals
in 2026
Total Change
(26.9%)
Annualized Inflation Rate
4.04%
Due to inflation, you would need $126.85 in 2026 to have the same purchasing power as $100.00 in 2020.
Inflation is the general increase in prices over time. This means your money buys less with each passing year.
The Consumer Price Index (CPI) measures the average change in prices paid by consumers. It's the standard way economists measure inflation.
This calculator uses historical CPI data from the Federal Reserve to show you the real value of money across different years. For example, $100 in 1980 is worth a lot more in purchasing power than $100 today.
A gallon of milk cost about $0.84 in 1980. Today, that same gallon costs around $3.50. That's not because milk became expensive in absolute terms — it's because inflation eroded the value of the dollar.
Using CPI, we can say:"$0.84 in 1980 has the same purchasing power as about $3.13 in 2024."
If your savings earn 2% but inflation is 4%, you're actually losing purchasing power. This is why investment returns matter.
Inflation reduces the real value of debt. If you borrowed $100,000 and inflation is high, you're paying back with less-valuable dollars.
Comparing salaries or prices from different eras is meaningless without inflation adjustment. This tool puts history in perspective.
Plan conservatively. Your retirement savings need to account for decades of inflation eating into purchasing power.
The Consumer Price Index measures the average change in prices paid by US consumers for goods and services. It's published monthly by the Bureau of Labor Statistics and is the official measure of inflation in the US.
Inflation happens due to several factors: increased demand for goods, rising production costs, more money in circulation, and supply chain disruptions. A modest amount of inflation (2-3% annually) is considered healthy by economists.
This calculator uses official CPI data from the Federal Reserve Economic Database (FRED). However, it uses the annual average CPI, so month-to-month accuracy is approximate. For precise historical pricing, consult academic sources.
Inflation is rising prices over time (your money buys less). Deflation is falling prices (your money buys more). Deflation sounds good but is actually dangerous for the economy because it discourages spending and investment.
View live inflation data and other economic indicators on our Live Rates dashboard.
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