Dollar Inflation Calculator

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US Dollar Inflation Calculator

How Does the Dollar Inflation Calculator Work?

The Dollar Inflation Calculator uses the Consumer Price Index (CPI) data provided by the Bureau of Labor Statistics (BLS) to calculate the change in purchasing power of the US dollar over time. Inflation represents the rate at which the general level of prices for goods and services rises, subsequently causing purchasing power to fall.

The Math Behind Inflation

To calculate how much a specific dollar amount from a past year is worth today (or vice versa), we use the following formula:

Adjusted Value = Original Amount × (Target Year CPI / Original Year CPI)

For example, if you want to know what $100 in 1950 is worth in 2024, you divide the 2024 CPI by the 1950 CPI and multiply that ratio by $100.

Why Tracking Inflation Matters

  • Financial Planning: Understanding how much you will need for retirement in future dollars.
  • Salary Negotiations: Ensuring your annual raises actually outpace the rising cost of living.
  • Historical Comparison: Comparing the true cost of a house or a car from decades ago to modern prices.

Example Calculation

In 1920, the average price of a gallon of milk was roughly $0.35. If we adjust that for inflation to 2024, that $0.35 has the same purchasing power as approximately $5.45 today. This indicates that while the nominal price of milk has changed, the "real" economic cost relative to the value of the dollar has shifted according to CPI trends.

function calculateInflation() { var cpiData = { 1913: 9.9, 1914: 10.0, 1915: 10.1, 1916: 10.9, 1917: 12.8, 1918: 15.1, 1919: 17.3, 1920: 20.0, 1921: 17.9, 1922: 16.8, 1923: 17.1, 1924: 17.1, 1925: 17.5, 1926: 17.7, 1927: 17.4, 1928: 17.1, 1929: 17.1, 1930: 16.7, 1931: 15.2, 1932: 13.7, 1933: 13.0, 1934: 13.4, 1935: 13.7, 1936: 13.9, 1937: 14.4, 1938: 14.1, 1939: 13.9, 1940: 14.0, 1941: 14.7, 1942: 16.3, 1943: 17.3, 1944: 17.6, 1945: 18.0, 1946: 19.5, 1947: 22.3, 1948: 24.1, 1949: 23.8, 1950: 24.1, 1951: 26.0, 1952: 26.5, 1953: 26.7, 1954: 26.9, 1955: 26.8, 1956: 27.2, 1957: 28.1, 1958: 28.9, 1959: 29.1, 1960: 29.6, 1961: 29.9, 1962: 30.2, 1963: 30.6, 1964: 31.0, 1965: 31.5, 1966: 32.4, 1967: 33.4, 1968: 34.8, 1969: 36.7, 1970: 38.8, 1971: 40.5, 1972: 41.8, 1973: 44.4, 1974: 49.3, 1975: 53.8, 1976: 56.9, 1977: 60.6, 1978: 65.2, 1979: 72.6, 1980: 82.4, 1981: 90.9, 1982: 96.5, 1983: 99.6, 1984: 103.9, 1985: 107.6, 1986: 109.6, 1987: 113.6, 1988: 118.3, 1989: 124.0, 1990: 130.7, 1991: 136.2, 1992: 140.3, 1993: 144.5, 1994: 148.2, 1995: 152.4, 1996: 156.9, 1997: 160.5, 1998: 163.0, 1999: 166.6, 2000: 172.2, 2001: 177.1, 2002: 179.9, 2003: 184.0, 2004: 188.9, 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: 237.0, 2016: 240.0, 2017: 245.1, 2018: 251.1, 2019: 255.7, 2020: 258.8, 2021: 271.0, 2022: 292.7, 2023: 304.7, 2024: 314.1 }; var amount = parseFloat(document.getElementById('amount').value); var startYear = parseInt(document.getElementById('startYear').value); var targetYear = parseInt(document.getElementById('targetYear').value); var resultDiv = document.getElementById('inflation-result'); var resultContent = document.getElementById('result-content'); if (isNaN(amount) || isNaN(startYear) || isNaN(targetYear)) { alert('Please enter valid numerical values.'); return; } if (!cpiData[startYear] || !cpiData[targetYear]) { alert('Please enter a year between 1913 and 2024.'); return; } var startCPI = cpiData[startYear]; var targetCPI = cpiData[targetYear]; var adjustedValue = amount * (targetCPI / startCPI); var totalInflationRate = ((targetCPI – startCPI) / startCPI) * 100; var formattedAdjusted = adjustedValue.toLocaleString('en-US', { style: 'currency', currency: 'USD' }); var formattedRate = totalInflationRate.toFixed(2); var direction = targetYear >= startYear ? "would be worth" : "is equivalent to"; resultContent.innerHTML = '' + amount.toLocaleString('en-US', { style: 'currency', currency: 'USD' }) + ' ' + 'in ' + startYear + ' ' + direction + ' ' + formattedAdjusted + ' ' + 'in ' + targetYear + '.' + 'The total cumulative inflation rate between these years is ' + formattedRate + '%.'; resultDiv.style.display = 'block'; }

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