What this calculator shows you
- Future Value
- Calculate future purchasing power
- Historical Comparison
- Compare values across years
- Inflation Rate
- Use custom or historical rates
- Wealth Erosion
- See real vs nominal growth
What is Inflation?
Inflation is the general increase in prices over time, reducing what each dollar can buy. US inflation averaged about 3% a year from 1913 to 2025 (BLS CPI data via the Minneapolis Fed), meaning prices double roughly every 23 years.
Protecting Against Inflation
Keep long-term savings in assets that historically beat inflation: stocks, real estate, I-bonds, TIPS. Cash and low-yield savings accounts lose purchasing power over time.
Questions people ask
What is a normal inflation rate?
The Federal Reserve targets 2% annual inflation. US inflation has averaged about 3% a year since 1913 (BLS CPI). Higher inflation (4%+) erodes purchasing power faster.
Do stocks protect against inflation?
Historically, yes. Stocks have returned about 7% after inflation over the long term. However, high inflation can cause short-term volatility.
Education only, not personalized financial, tax or investment advice. Results are estimates based on the numbers you enter; real returns vary and losses happen.