Inflation Adjustment Calculator

Inflation adjustment converts a historical dollar amount into its equivalent value in a different year using the Consumer Price Index (CPI). It shows how the real purchasing power of money changes over time.

Core formula: Adjusted Value = Original Amount × (CPI in Target Year ÷ CPI in Base Year)

Where:

• Original Amount = the dollar figure you want to adjust
• CPI in Target Year = the Consumer Price Index for the year you’re converting to
• CPI in Base Year = the Consumer Price Index for the year the original amount is from
• The US CPI base period is 1982–1984 = 100

Historical US CPI-U values (annual averages):

Worked examples:

Example 1 - What was $100 in 1970 worth in 2024? Adjusted = $100 × (314.2 ÷ 38.8) = $100 × 8.10 = $810 $100 bought in 1970 what costs about $810 today. Spread over 54 years that is an average of roughly 4% a year, which is the more useful way to hold it in your head.

Example 2 - What is a $65,000 salary in 2010 worth in 2024? Adjusted = $65,000 × (314.2 ÷ 218.1) = $65,000 × 1.4406 = $93,641 So a salary that has not reached about $93,600 by 2024 has lost ground since 2010, whatever the raises looked like at the time. That is a 44% increase needed over fourteen years, or about 2.6% a year.

Limitation: The CPI measures an average basket of goods. Individual inflation rates vary dramatically. Healthcare and housing have inflated far faster than the CPI average, while electronics and appliances have gone the other way. The CPI-U is appropriate for general comparison but may not reflect your personal spending patterns.