Inflation calculator
Inflation is the silent fee on cash. See what your money will actually buy in the future, and what it takes to keep up.
View yearly schedule
Projections are illustrations based on your inputs, not predictions or advice. Actual returns vary year to year.
Why inflation belongs in every plan
US consumer prices have risen about 3% a year on average over the past century. That sounds gentle, but it halves the value of cash roughly every 24 years. A retirement plan that ignores inflation will look fine on paper and fail in practice.
Inflation is why holding large amounts of cash for decades is a losing strategy, and why investments that outpace inflation, like broad stock funds, sit at the center of long term plans. It is also why planners quote results in today's dollars, as our growth and retirement calculators do.
Recent years show the range: inflation ran near 2% through the 2010s, spiked above 8% in 2022, and settled back toward 3%. Use 3% as a baseline and stress test with 4%.
Common questions
What causes inflation?
Prices rise when demand outruns supply, when production costs climb, or when the money supply grows faster than the economy. Central banks target about 2% a year as a healthy level in the US.
How do I protect savings from inflation?
Assets with growth or income that adjusts over time: broad stock funds, inflation protected bonds like TIPS and I Bonds, and real assets. Ordinary cash and long fixed rate bonds are most exposed.
Is the official CPI accurate for me?
CPI tracks a national average basket. Your personal inflation depends on what you buy. Housing, healthcare, and education have often outpaced the average, so heavy spenders in those areas experience higher inflation.