Inflation Calculator - US CPI 1913-2025
Inflation Calculator
The inflation calculator uses actual US Bureau of Labor Statistics CPI-U data from 1913 to 2025 to show how the purchasing power of money has changed over time. It answers questions like "What would $100 in 1950 be worth today?" or "How much did prices rise between 1970 and 1980?"
Conversion Formula
Adjusted Value = Amount × (CPI[EndYear] / CPI[StartYear]). Total Inflation % = (CPI[End] - CPI[Start]) / CPI[Start] × 100. Average Annual Rate = (CPI[End] / CPI[Start])^(1/years) - 1, expressed as a percentage.
Step-by-Step Examples
$100 in 1913, end year 2025 = $3,242.42 in 2025
CPI: 9.9 to 321.0; ratio = 32.42; 32.4x price increase in 112 years
$1,000 in 1990, end year 2024 = $2,404.74 in 2024
CPI: 130.7 to 314.2; total inflation 140.5%
$500 in 1970, end year 1980 = $1,061.86 in 1980
CPI: 38.8 to 82.4; the 1970s saw 112% inflation in just 10 years
History
The Bureau of Labor Statistics began publishing the CPI in 1919, with historical estimates retroactively calculated back to 1913. The most significant inflationary periods in US history include WWI (1917-1920), WWII (1941-1948), and the "Great Inflation" of 1965-1982 driven by oil shocks and monetary policy. The Fed targets 2% annual inflation as a healthy rate for the modern economy.
Common Use Cases
- Historical salary comparisons
- Understanding real estate price changes over time
- Adjusting contracts or settlements for inflation
- Economics research and education
- Evaluating the real return on long-term investments
Frequently Asked Questions
What is the CPI and how is it measured?
The Consumer Price Index (CPI-U) is published monthly by the US Bureau of Labor Statistics (BLS). It tracks the average price change of a fixed "basket" of goods and services purchased by urban consumers, including food, housing, apparel, transportation, medical care, and recreation. The base period is 1982-84 = 100.
What is the difference between real and nominal values?
Nominal values are expressed in current dollars with no adjustment for inflation. Real values are adjusted for inflation to reflect constant purchasing power. If a salary rose from $50,000 in 2000 to $80,000 in 2024, the nominal increase is 60%, but after accounting for ~87% total inflation over that period, the real purchasing power actually declined.
How does inflation affect purchasing power?
Inflation reduces the purchasing power of money over time. $100 in 1990 had the same purchasing power as about $237 in 2024 - meaning prices roughly doubled. Savers who keep money in low-yield accounts lose real purchasing power when inflation exceeds their interest rate.
Why does this calculator only cover the US?
This calculator uses US CPI-U data, the most widely cited inflation measure for the United States. Other countries have their own inflation indexes (UK uses CPIH, EU uses HICP, etc.) with different methodologies and histories. For international comparisons, World Bank and IMF publish multi-country datasets.
What are the limitations of CPI as an inflation measure?
CPI has several known limitations: the basket is updated infrequently and may not reflect actual spending patterns; it uses a fixed geographic sample; housing is measured by "owners' equivalent rent" rather than home prices; and quality improvements in goods can be accounted for differently across different product categories. Alternative measures like PCE (Personal Consumption Expenditures) are also commonly used.