Inflation Calculator
How it works
The amount is compounded by the assumed rate once per year between the two years given: amount · (1+rate)ⁿ, where n is the end year minus the start year. When the end year comes before the start year, n is negative, which divides the amount back out instead of growing it — the same formula runs both directions.
Frequently asked questions
Where does the inflation rate come from?
You supply it. This tool does the compounding arithmetic for whatever annual rate you assume — it does not look up a historical or forecast rate for you, so the result is only as good as that assumption.
Can I convert a later amount back to an earlier year?
Yes — set the end year before the start year and the same formula runs in reverse, dividing the amount back out instead of growing it. Compounding forward then backward by the same span returns you to the original amount.
What does a negative rate mean?
A negative rate models deflation — prices falling rather than rising. The formula handles it the same way as a positive rate; it just shrinks the amount instead of growing it.
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