How the inflation calculator works
This calculator uses the Consumer Price Index for All Urban Consumers (CPI-U) published by the U.S. Bureau of Labor Statistics — the most widely used measure of U.S. inflation. To convert money between years, it multiplies the amount by the ratio of the CPI in the target year to the CPI in the starting year:
Value today = Amount × (CPI today ÷ CPI then)
Annual figures are yearly averages. When you choose "Today", the calculator uses the most recent monthly CPI (September 2026). Our data updates automatically each month when BLS releases new figures.
Current U.S. inflation
Consumer prices rose 3.7% over the most recent 12 months. The Federal Reserve targets 2% average inflation over time, measured with a related index (PCE). Inflation peaked at 9.1% in June 2022 — the highest in four decades — before cooling.
Why inflation matters for your money
- Savings: money in an account earning less than inflation loses purchasing power every year.
- Salary: a raise smaller than inflation is a pay cut in real terms. Compare your raise with the inflation rate above.
- Retirement planning: at 3% inflation, prices double roughly every 24 years — see our 401(k) calculator for inflation-adjusted projections.
- Historical comparisons: a $5,000 car in 1975 or a $20,000 salary in 1985 makes sense only when converted to today's dollars.
Historical inflation highlights
| Period | What happened |
|---|---|
| 1920–1933 | Deflation: prices fell sharply during the early 1920s and the Great Depression. |
| 1946–1948 | Post-war price surge as wartime controls ended. |
| 1973–1981 | "Great Inflation" driven by oil shocks; inflation reached 13.5% in 1980. |
| 2009 | Prices fell slightly (−0.4%) during the Great Recession. |
| 2021–2023 | Pandemic-era supply shocks and demand pushed inflation to 40-year highs. |
Limitations
CPI measures an average basket of goods and services for urban consumers. Your personal inflation rate may differ depending on where you live and what you buy — housing, health care and college tuition have risen much faster than average, while electronics have become cheaper.
Frequently asked questions
What is the current inflation rate in the U.S.?
How much is $100 from 1970 worth today?
What is CPI?
Can this calculator show deflation?
Sources & methodology
This calculator was last reviewed on November 1, 2026. Figures are based on the following official and primary sources:
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