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Inflation & Purchasing Power Calculator

Find out what a sum of money from the past is worth in today's terms — or project what today's money will be worth in the future. Use historical average rates or enter a custom inflation rate for any country.

Inflation & Purchasing Power Calculator
$
US avg ~3% · UK avg ~3% · AU avg ~3% · Use local CPI for accuracy.
Equivalent Value
$0
Original Amount
$0
Adjusted Value
$0
Cumulative Inflation
0%
Purchasing Power Change
—
Years
0
Avg Annual Rate Used
0%

Historical Average Inflation Rates by Country

CountryAvg Annual Rate (10-yr)$1,000 in 2015 → 2025
United States~3.1%~$1,354
United Kingdom~3.4%~$1,397
Australia~3.0%~$1,344
Canada~2.8%~$1,321
Eurozone~2.7%~$1,307
India~5.5%~$1,708

Rates shown are approximate averages and varied significantly year to year (notably 2021–2023 saw 7–11% inflation in many countries). Use your country's official CPI data for precise historical calculations.

Frequently Asked Questions

This calculator uses the compound inflation formula: Adjusted Value = Original × (1 + rate)^years. For example, $1,000 from 2005 at 3% average inflation for 20 years: $1,000 × (1.03)^20 = $1,806. That means you'd need $1,806 in 2025 to buy what $1,000 bought in 2005. Governments measure inflation using the Consumer Price Index (CPI) — a basket of goods and services tracked monthly.
For historical calculations, use the average CPI rate for the period from your country's statistics bureau (e.g. US BLS, UK ONS, ABS Australia). For future projections, most central banks target 2–3%. Use 3% as a conservative long-term average for most developed countries. For India or other emerging markets, 5–6% is more realistic. The actual rate will vary year to year.
If your savings account earns 2% interest but inflation is 3%, your real return is −1% — you're losing purchasing power. To grow wealth in real terms, your investment returns must exceed inflation. Historically, equities have returned 7–10% annually (nominal), giving a real return of 4–7%. Cash and low-yield savings are vulnerable to inflation erosion over long periods.