An Inflation Calculator is a financial tool that helps users understand the impact of inflation on the purchasing power of money over time. By entering a past or future date and an inflation rate, users can determine how much the value of money has changed due to rising prices.

How an Inflation Calculator Works

An inflation calculator uses historical and projected inflation rates to estimate changes in the value of money. By inputting an initial amount, a time period, and an average inflation rate, the calculator determines how much the equivalent amount would be worth in today's terms or in the future.

Benefits of Using an Inflation Calculator

• Understanding Purchasing Power – Helps users see how inflation affects the real value of money over time.
• Financial Planning – Assists in making informed decisions about savings, investments, and future expenses.
• Retirement Planning – Provides insights into how much money will be needed to maintain a desired lifestyle in the future.
• Price Comparisons – Allows users to compare the cost of goods and services over different time periods.