How this inflation calculator turns CPI into “worth in year B”#
The standard purchasing-power formula is: adjusted amount = original × (CPI in the “to” year ÷ CPI in the “from” year). If the index doubles, you need twice as many dollars to buy the same basket of goods. This tool embeds approximate US CPI-U annual averages (1982–84 = 100) so you can answer “what is $X in year A worth in year B?” without looking up tables by hand. The same ratio works in reverse: pick a recent year as “from” and an older year as “to” to express today’s dollars in past purchasing power.
Why annual averages, not monthly CPI#
Official BLS CPI is released monthly. Annual averages smooth seasonal noise and match how many people remember prices (“in 1995” rather than “in March 1995”). That makes year-to-year comparisons simple and stable for salaries, house prices, and long-run charts. The trade-off is less precision inside a single year — if you need month-level official figures, use the BLS CPI Inflation Calculator. Here the goal is a fast, private, client-side estimate for US dollar purchasing power across decades.
Future years: latest CPI plus an optional flat rate#
Autocomplete often includes “inflation calculator future.” Historical CPI stops at the latest year in the table. Beyond that, this tool does not invent a macroeconomic forecast. Instead you can toggle a simple projected annual rate: dollars are first (or last) linked through the latest CPI year, then compounded at your assumed %. That answers “what if inflation ran ~2.5% a year for five more years?” without pretending the rate is known. Leave the toggle off for purely historical spans inside the table.
US CPI focus and important caveats#
Figures are approximate public CPI-U style annual averages for the United States (urban consumers), not euro, UK, or country-specific baskets. Personal inflation can differ if your spending mix (rent, food, healthcare) diverges from the CPI basket. Results are estimates for education and comparison — not financial, tax, or investment advice. Always cross-check critical decisions against official BLS releases or a licensed advisor.