Inflation Adjustment Calculator: Preserve Purchasing Power
Our Inflation Adjustment Calculator uses compound formula or custom rates to reveal erosion over time.
Why Adjust for Inflation?
$100 in 2000 buys less today—quantify the difference for budgeting, investing, or salary negotiations.
Key Concepts
| Term | Formula | Example |
|---|---|---|
| Adjusted Value | Amount × (1 + r)^years | $100 × 1.03^25 |
| Total Inflation | (Future / Past - 1) × 100% | 115% |
| Real Return | (1 + nom)/(1 + inf) - 1 | 3.88% |
Example: $100 from 2000 to 2025 at 3%
- Future Cost: $209.35
- Total Inflation: 109.35%
- Annualized: 3%
- Real 7% Return: 3.88%
Formula
Future = Present × (1 + r)^t
Real = (1 + nominal)/(1 + inflation) - 1
Pro Tips
- Use ~2-3% long-term average
- Negative inflation = deflation
- Combine with Rule of 72
- Real returns for investments
Limitations
- Average rate assumption
- No regional CPI
- Constant rate
Conclusion
Fight inflation with our Inflation Adjustment Calculator. Explore Finance tools.