Enter your average monthly spending for the current year and the previous year to see how price increases have specifically affected your wallet.
Category
Last Year ($)
This Year ($)
Your Personal Inflation Results
0%
Total Spending: vs
function calculateInflation() {
var prevHousing = parseFloat(document.getElementById('prev_housing').value) || 0;
var currHousing = parseFloat(document.getElementById('curr_housing').value) || 0;
var prevFood = parseFloat(document.getElementById('prev_food').value) || 0;
var currFood = parseFloat(document.getElementById('curr_food').value) || 0;
var prevTransport = parseFloat(document.getElementById('prev_transport').value) || 0;
var currTransport = parseFloat(document.getElementById('curr_transport').value) || 0;
var prevUtilities = parseFloat(document.getElementById('prev_utilities').value) || 0;
var currUtilities = parseFloat(document.getElementById('curr_utilities').value) || 0;
var prevMisc = parseFloat(document.getElementById('prev_misc').value) || 0;
var currMisc = parseFloat(document.getElementById('curr_misc').value) || 0;
var totalPrev = prevHousing + prevFood + prevTransport + prevUtilities + prevMisc;
var totalCurr = currHousing + currFood + currTransport + currUtilities + currMisc;
if (totalPrev > 0) {
var inflationRate = ((totalCurr – totalPrev) / totalPrev) * 100;
var resultDiv = document.getElementById('inflation-result');
var rateOutput = document.getElementById('inflation-rate-output');
var comparisonText = document.getElementById('inflation-comparison');
resultDiv.style.display = 'block';
rateOutput.innerHTML = inflationRate.toFixed(2) + "%";
document.getElementById('prev-total-display').innerHTML = "$" + totalPrev.toLocaleString();
document.getElementById('curr-total-display').innerHTML = "$" + totalCurr.toLocaleString();
if (inflationRate > 0) {
comparisonText.innerHTML = "Your purchasing power has decreased. You are spending $" + (totalCurr – totalPrev).toLocaleString() + " more per month for the same lifestyle.";
} else if (inflationRate < 0) {
comparisonText.innerHTML = "Your personal inflation is negative! You are spending less this year for your core expenses.";
} else {
comparisonText.innerHTML = "Your expenses have remained perfectly stable compared to last year.";
}
} else {
alert("Please enter values for at least one category from last year.");
}
}
Understanding Your Personal Inflation Rate
The Consumer Price Index (CPI) often reported in the news is a broad average based on a "basket of goods" for a typical urban consumer. However, your Personal Inflation Rate is far more relevant to your financial health. It measures how price changes specifically affect your unique spending habits.
How Personal Inflation Differs from CPI
If you don't drive, a 20% spike in gasoline prices won't affect you, even if it drives the national CPI up. Conversely, if you spend 50% of your income on organic groceries and those prices skyrocket, your personal inflation rate will be much higher than the national average. By calculating your own rate, you can pinpoint exactly where your budget is "leaking" and make informed adjustments.
The Calculation Formula
The math behind this calculator is the same used by economists to determine percentage change:
((Total Current Expenses – Total Previous Expenses) / Total Previous Expenses) x 100
Realistic Example
Imagine last year your monthly expenses were:
Rent: $1,200
Groceries: $400
Gas: $150
Total: $1,750
This year, for the same items, you pay:
Rent: $1,300 (+8.3%)
Groceries: $480 (+20%)
Gas: $180 (+20%)
Total: $1,960
Your personal inflation rate would be 12% ($210 increase / $1,750 original cost), which might be significantly higher than the 3% or 4% reported on the evening news.
3 Tips to Combat High Personal Inflation
Substitute High-Inflation Goods: If beef prices rise faster than chicken, switching proteins can lower your specific grocery inflation.
Audit Fixed Costs: Negotiate internet bills or switch insurance providers to offset the rising cost of variable goods like food and fuel.
Focus on Percentages: Don't just look at the dollar amount. A 10% increase on a $1,500 rent check is far more damaging than a 50% increase on a $5 streaming subscription.