US Inflation Rate Calculator
The inflation rate measures the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. In the United States, the most commonly cited measure of inflation is the Consumer Price Index (CPI), published by the Bureau of Labor Statistics (BLS). This calculator helps you estimate the impact of a given inflation rate over a specific period.
How it Works:
This calculator uses the following formula to estimate the future value of an amount adjusted for inflation:
Future Value = Initial Value * (1 + (Annual Inflation Rate / 100)) ^ Number of Years
For example, if you have an item that costs $100 today and the annual inflation rate is 3.5%, the calculator will show you its approximate cost after a specified number of years. This helps understand how the purchasing power of money decreases over time due to rising prices.
Understanding Inflation:
Inflation can significantly affect savings and investments. A positive inflation rate means that your money will buy less in the future than it does today. Conversely, deflation (a negative inflation rate) means prices are falling, and your money can buy more. Central banks, like the Federal Reserve in the US, often aim for a low, stable rate of inflation to promote economic growth without destabilizing the economy.
function calculateInflationImpact() {
var initialValue = parseFloat(document.getElementById("initialValue").value);
var annualInflationRate = parseFloat(document.getElementById("annualInflationRate").value);
var numberOfYears = parseInt(document.getElementById("numberOfYears").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = ""; // Clear previous results
if (isNaN(initialValue) || isNaN(annualInflationRate) || isNaN(numberOfYears)) {
resultDiv.innerHTML = "Please enter valid numbers for all fields.";
return;
}
if (initialValue < 0 || annualInflationRate < -100 || numberOfYears < 0) {
resultDiv.innerHTML = "Please enter sensible positive values for initial value and years, and a realistic inflation rate.";
return;
}
var inflationFactor = 1 + (annualInflationRate / 100);
var futureValue = initialValue * Math.pow(inflationFactor, numberOfYears);
// Formatting for currency-like display if initial value implies currency
var formattedInitialValue = initialValue.toFixed(2);
var formattedFutureValue = futureValue.toFixed(2);
var formattedAnnualRate = annualInflationRate.toFixed(2);
resultDiv.innerHTML =
"
Initial Value: $" + formattedInitialValue + "" +
"
Annual Inflation Rate: " + formattedAnnualRate + "%" +
"
Number of Years: " + numberOfYears + "" +
"
Estimated Future Value (after " + numberOfYears + " years): $" + formattedFutureValue + "" +
"This means that due to inflation, $" + formattedInitialValue + " today would have the purchasing power of approximately $" + formattedFutureValue + " in " + numberOfYears + " years.";
}
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