📈 Inflation Calculator
What is your money actually worth?
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Historical US Inflation
| Period | Avg Annual Rate | $100 → Today |
|---|---|---|
| 1970 | 4.4% | $818 |
| 1980 | 3.5% | $385 |
| 1990 | 2.8% | $243 |
| 2000 | 2.6% | $186 |
| 2010 | 2.9% | $148 |
| 2020 | 4.8% | $133 |
Understanding Inflation
Inflation means the same dollar buys less over time. At the historical US average of 3.2% annual inflation, $100 today will have the purchasing power of $73 in 10 years and $53 in 20 years. This is why money sitting in a checking account (earning 0-0.5%) is actually losing value — you need investments that beat inflation (historically 7-10% for stocks) just to maintain purchasing power.
The 2021-2023 inflation spike (peaking at 9.1% in June 2022) reminded an entire generation why inflation matters. Groceries, gas, rent, and housing costs jumped 15-30% in two years, eroding the purchasing power of wages and savings that did not keep pace.