Calculate purchasing power, compare your salary against inflation, project future costs by category, and see how silently inflation erodes the value of your money.
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Equivalent Value Today
$0
Original Amount
$0
Avg Annual Rate
0%
Purchasing Power Lost
$0
Value Retained
0%
Purchasing Power of $1 Over Time
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Calculating...
Your Raise
0%
Inflation Rate
0%
Real Gain / Loss
0%
Salary Needed to Keep Up
$0
Real Purchasing Power of Current Salary
$0
Future Cost
$0
Today's Cost
$0
Extra Cost (Inflation)
$0
Price Doubles In
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Year 1 Cost Increase
$0
Cost Growth Projection
Future Annual Spend
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Current Annual Spend
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Future Annual Spend
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Category Rate
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Total Extra Spent (Cumulative)
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Spend Projection vs Today
US Category Inflation Reference
Historical average annual inflation rates by spending category (20-year US average).
🎓 Education
~5.8%/yr
Fastest growing — college tuition
🏥 Medical Care
~5.1%/yr
Healthcare & prescription drugs
🚗 Transportation
~4.8%/yr
Vehicles, fuel, insurance
🏠 Housing / Rent
~4.2%/yr
Shelter & utilities
🍔 Food & Dining
~3.5%/yr
Groceries + restaurants
🛒 General CPI
~3.0%/yr
All-items average
👕 Apparel
~2.8%/yr
Clothing & footwear
📱 Technology
~2.5%/yr
Electronics & software
Year-by-Year Breakdown
What Is Purchasing Power?
Also searched as: inflation calculator us | dollar value calculator | purchasing power calculator | what is my dollar worth Optimized for US users with American units and terminology.
Purchasing power is the value of a currency expressed in terms of the amount of goods and services it can buy. Inflation reduces purchasing power over time — the same dollar buys less as prices rise. At 3% annual inflation, $10,000 today has the purchasing power of only $7,441 in 10 years. This makes inflation one of the most important factors in personal financial planning.
How Inflation Affects Your Salary
Many workers receive annual raises without realizing they may be losing ground in real terms. If your employer gives you a 3% raise but inflation runs at 5%, your real purchasing power has declined by approximately 2%. The Salary vs Inflation mode compares your actual raise directly against the CPI for the same period, revealing whether you truly gained, maintained, or lost purchasing power.
Category-Specific Inflation Rates
The headline CPI figure masks large differences between spending categories. Medical care and higher education have historically inflated at 5–6% annually — nearly double the overall CPI. If healthcare and tuition make up a significant share of your budget, your personal inflation rate is likely well above the headline number. The By Category mode lets you model exactly how each spending area will grow over time.
Protecting Your Money from Inflation
The most effective long-term inflation hedge is investing in equities — US stocks have historically returned about 10% annually, or 7% after inflation. For liquid savings, high-yield savings accounts (currently 4–5% APY) and Treasury I Bonds (which adjust with CPI) are strong options. Keeping large amounts in traditional savings accounts at 0.1–0.5% APY during 3%+ inflation is a guaranteed real loss of purchasing power.
Frequently Asked Questions
Use the Inflation Calculator above — enter your values and get instant results. This free online tool calculates what is inflation rate today without any download or signup required. Results update in real time as you type.
Use the Inflation Calculator above — enter your values and get instant results. This free online tool calculates inflation calculator 1980 to 2024 without any download or signup required. Results update in real time as you type.
The Consumer Price Index (CPI) measures the average change in prices paid by urban consumers for a representative basket of goods and services. The Bureau of Labor Statistics updates it monthly. The basket includes food, housing, transportation, medical care, recreation, education, and other categories weighted by typical consumer spending patterns.
Headline inflation includes all items in the CPI basket. Core inflation excludes food and energy because they tend to be volatile. The Federal Reserve focuses primarily on core inflation when setting monetary policy, as it provides a clearer picture of underlying price trends without short-term commodity swings.
Inflation is driven by demand-pull (too much money chasing too few goods), cost-push (rising production costs passed to consumers), and monetary factors (excess money supply growth). The 2021–2023 US inflation surge was driven by supply chain disruptions, massive fiscal stimulus, and pent-up post-pandemic demand hitting constrained supply.
Yes. The Federal Reserve targets 2% annual inflation as the ideal level. Mild inflation encourages spending and investment, supports wage growth, and gives central banks room to cut rates during recessions. Deflation — falling prices — is actually more dangerous, as it can trigger economic stagnation by causing consumers to delay purchases.