Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.
Over time, the value of money decreases due to inflation. For example, $100 in 1995 would buy significantly more than $100 today.
This calculator helps you understand the equivalent purchasing power of a sum of money from 1995 in a target year, by adjusting for the cumulative inflation between those two periods.
How it Works
The calculation is based on the Consumer Price Index (CPI) data. The CPI is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.
The formula used is:
Adjusted Amount = Original Amount * (CPI in Target Year / CPI in 1995)
Where:
Original Amount: The value of money in 1995 that you want to adjust.
CPI in Target Year: The Consumer Price Index for the year you want to know the equivalent value in.
CPI in 1995: The Consumer Price Index for the year 1995.
Disclaimer: This calculator uses historical CPI data for illustrative purposes. Actual inflation rates can vary, and the CPI is a statistical measure that may not perfectly reflect individual purchasing experiences. We have used approximated CPI values for demonstration. For precise financial decisions, consult official sources like the Bureau of Labor Statistics (BLS) or a financial advisor.
Example Usage:
If you had $1,000 in 1995 and want to know its equivalent purchasing power in the year 2023:
This suggests that $1,000 in 1995 had the same purchasing power as approximately $1,999.34 in 2023.
function calculateInflation() {
var amount = parseFloat(document.getElementById("amount").value);
var targetYear = parseInt(document.getElementById("year").value);
var resultDiv = document.getElementById("result");
// Approximate CPI data for specific years (Source: BLS data approximations)
// These are illustrative and simplified for this example. For precise calculations, use up-to-date CPI data.
var cpiData = {
1995: 152.4,
1996: 156.9,
1997: 160.5,
1998: 163.0,
1999: 166.6,
2000: 172.2,
2001: 176.7,
2002: 179.8,
2003: 184.0,
2004: 189.1,
2005: 195.3,
2006: 201.6,
2007: 207.3,
2008: 215.3,
2009: 214.5,
2010: 218.1,
2011: 224.9,
2012: 229.6,
2013: 233.0,
2014: 236.7,
2015: 237.9,
2016: 241.4,
2017: 245.1,
2018: 251.0,
2019: 255.7,
2020: 258.8,
2021: 270.9,
2022: 292.7,
2023: 304.7 // Approximate average CPI for 2023
// Add more years as needed, or implement interpolation for missing years.
};
var baseYear = 1995;
var baseCpi = cpiData[baseYear];
if (isNaN(amount) || amount <= 0) {
resultDiv.innerHTML = "Please enter a valid positive amount.";
return;
}
if (isNaN(targetYear) || targetYear < 1995) {
resultDiv.innerHTML = "Please enter a target year of 1995 or later.";
return;
}
var targetCpi = cpiData[targetYear];
if (targetCpi === undefined) {
resultDiv.innerHTML = "CPI data not available for the target year. Please try another year.";
return;
}
if (baseCpi === undefined) {
resultDiv.innerHTML = "CPI data not available for the base year (1995).";
return;
}
var inflationFactor = targetCpi / baseCpi;
var adjustedAmount = amount * inflationFactor;
resultDiv.innerHTML = "$" + adjustedAmount.toFixed(2) + " (in " + targetYear + " dollars)";
}