Purchasing Power Calculator
Calculate how the purchasing power of money changes between two years due to inflation. See what an amount from one year is equivalent to in another year and understand the percentage change in buying power.
Purchasing Power Calculator
FAQ
What is purchasing power?
Purchasing power is the quantity of goods or services that one unit of money can buy. As inflation rises, purchasing power decreases, meaning you need more money to buy the same items.
How does inflation reduce purchasing power?
When prices rise due to inflation, each dollar buys fewer goods and services. For example, at 3% annual inflation, $100 today will only buy about $74 worth of goods in 10 years.
Can I use this to compare historical dollar values?
Yes, enter an assumed average annual inflation rate along with the from and to years. For rough US historical comparisons, an average rate of 3% is commonly used, though actual rates vary year to year.