Inflation Calculator
Understand the real value of your money with our easy-to-use Inflation Calculator. Explore how the purchasing power of your dollars changes over time, due to inflation. Make smart financial decisions for your future, starting today.
Frequently Asked Questions:
How does the Inflation Calculator work?
Our Inflation Calculator uses the compound interest formula to determine how much a specific dollar amount today would be worth in the future or what it was worth in the past, based on an inputted annual inflation rate.
What is the 'Forward Flat' and 'Backward Flat' option in the calculator?
The 'Forward Flat' option allows you to see how the value of a given amount of money decreases over time due to inflation, reflecting its future purchasing power. Conversely, the 'Backward Flat' option calculates how much more the given amount of money was worth in the past, due to the effects of inflation.
Why does the purchasing power of money decrease over time?
The purchasing power of money tends to decrease over time due to inflation. Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. Therefore, the same amount of money will generally buy you less in the future than it does today.
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