Inflation Calculator

Formatting only. This does not change the calculation.
The price, cost or sum of money measured at the starting date. Zero is allowed and returns zero.
Used in rate mode only. A negative rate is deflation; -100% wipes the amount out entirely.
Periods of compounding in rate mode. In index mode it is used only to annualise the measured change; set it to the number of years between the two readings.
Index mode only. For example the CPI-U annual average for the earlier year.
Index mode only. Must come from the same published series and base period as the starting index.
Amount at the later price level
1,343.92
Inflation & Purchasing Power Calculator
Increase in the amount
343.92
Cumulative price factor
1.343916
Total price change
34.3916 %
Rate per period (compounded)
3.000000 %
What the base amount still buys
744.09
Purchasing power lost
25.5906 %
Worked out from Compound escalation, researched contract ESCALATION (Compound Cost Escalation Calculator) and 2 other sources.

How this is worked out

5 steps
  1. Cumulative price factor = (1 + 3/100)^10 = 1.343916.
  2. Amount at the later price level = 1000 x 1.343916 = 1343.92.
  3. Total price change = (1.343916 - 1) x 100 = 34.3916%.
  4. The same 1000 at the later price level buys 1000 / 1.343916 = 744.09.
  5. Rate per period = factor^(1/10) - 1 = 3%.

Results are general information, not financial, tax, legal, medical or engineering advice.