Us Inflation Rate Calculator

by

US Inflation Rate Calculator

This calculator helps you estimate the impact of US inflation over a given period. You can input an initial amount and the average annual inflation rate to see how its purchasing power might change over time. Understanding inflation is crucial for financial planning, as it affects the real value of your money.

Understanding US Inflation

Inflation is 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 Bureau of Labor Statistics (BLS) tracks inflation using the Consumer Price Index (CPI). A positive inflation rate means that, on average, prices have increased, and your money buys less than it did before.

For example, if the inflation rate is 3% per year, an item that cost $100 today would cost approximately $103 in one year. Over longer periods, this effect can significantly erode the purchasing power of savings if the returns on those savings do not keep pace with inflation.

This calculator uses a compound inflation formula: Future Value = Present Value * (1 + inflation rate)^number of years.

#inflation-calculator { font-family: sans-serif; max-width: 500px; margin: 20px auto; padding: 20px; border: 1px solid #ccc; border-radius: 8px; } .input-group { margin-bottom: 15px; } .input-group label { display: block; margin-bottom: 5px; font-weight: bold; } .input-group input { width: calc(100% – 10px); padding: 8px; border: 1px solid #ccc; border-radius: 4px; } button { background-color: #4CAF50; color: white; padding: 10px 15px; border: none; border-radius: 4px; cursor: pointer; font-size: 16px; } button:hover { background-color: #45a049; } #result { margin-top: 20px; padding: 15px; background-color: #f0f0f0; border: 1px solid #ddd; border-radius: 4px; } function calculateInflation() { var initialAmount = parseFloat(document.getElementById("initialAmount").value); var years = parseInt(document.getElementById("years").value); var annualInflationRate = parseFloat(document.getElementById("annualInflationRate").value); var resultDiv = document.getElementById("result"); resultDiv.innerHTML = ""; // Clear previous results if (isNaN(initialAmount) || isNaN(years) || isNaN(annualInflationRate)) { resultDiv.innerHTML = "Please enter valid numbers for all fields."; return; } if (initialAmount < 0 || years < 0 || annualInflationRate < 0) { resultDiv.innerHTML = "Please enter non-negative values."; return; } var inflationRateDecimal = annualInflationRate / 100; var futureValue = initialAmount * Math.pow((1 + inflationRateDecimal), years); var purchasingPowerLost = initialAmount – futureValue; resultDiv.innerHTML = "

Calculation Results:

" + "Initial Amount: $" + initialAmount.toFixed(2) + "" + "Over " + years + " Years" + "At an Average Annual Inflation Rate of: " + annualInflationRate.toFixed(2) + "%" + "Estimated Future Value (Purchasing Power): $" + futureValue.toFixed(2) + "" + "Estimated Loss in Purchasing Power: $" + purchasingPowerLost.toFixed(2) + ""; }

Leave a Comment