Personal Inflation Rate Calculator
Compare your spending from one year ago to today to find your true inflation rate.
Expense Category
Monthly Cost (1 Year Ago)
Monthly Cost (Today)
Housing (Rent/Mortgage)
$
$
Groceries & Food
$
$
Utilities (Energy/Water)
$
$
Transportation (Gas/Car)
$
$
Healthcare/Insurance
$
$
Other (Entertainment/Misc)
$
$
Your Personal Inflation Rate: 0.0%
Total Monthly Spend (Old)
$0.00
Total Monthly Spend (Now)
$0.00
Extra Cost Per Year
$0.00
What is a Personal Inflation Rate?
The "official" inflation rate reported in the news is usually based on the Consumer Price Index (CPI). The CPI measures a hypothetical basket of goods and services for the average urban consumer. However, you are not a statistic. Your spending habits are unique.
Your Personal Inflation Rate represents exactly how much the cost of your specific lifestyle has increased over a set period, typically the last 12 months. If you spend significantly more on categories that have skyrocketed in price (like food or gasoline) but possess a fixed-rate mortgage (shielding you from rent hikes), your personal rate will differ wildly from the national average.
How This Calculator Works
To determine your personal rate, we compare a weighted snapshot of your expenses from one year ago against your current expenses. The math is straightforward:
- Step 1: Sum your total monthly expenses from 12 months ago.
- Step 2: Sum your total monthly expenses for the same categories today.
- Step 3: Calculate the percentage difference using the formula:
((Current Total – Previous Total) / Previous Total) * 100.
Why Is My Inflation Rate Higher Than the CPI?
It is common to see a personal rate higher than the government-reported CPI. This discrepancy often occurs due to:
- Dietary Choices: If you consume specific food items (like eggs, meat, or dairy) that have faced supply chain issues, your grocery bill may rise faster than the general "Food" index.
- Commuting: If you drive a long distance to work, you are more exposed to volatility in fuel prices compared to someone who works from home or uses public transit.
- Housing Leases: While homeowners with fixed mortgages are insulated from interest rate hikes regarding monthly payments, renters often face immediate increases when leases renew.
Interpreting Your Results
Under 2%: Your cost of living is stable. You are likely shielded by fixed costs like a mortgage or low consumption of volatile goods.
2% – 5%: This is a moderate increase, typical of a healthy but growing economy. Adjustments to your budget may be minor.
Over 5%: You are experiencing high personal inflation. This indicates a significant loss of purchasing power. Consider auditing your highest categories (usually food or transport) to find substitutes or cost-saving measures.