Finance
What past money is worth in today's money at an average inflation rate — and what today's money was worth back then.
A single average rate for the whole period. Results update as you type. All calculations run locally in your browser.
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Value today = past amount × (1 + i)t, where i is the average annual inflation rate and t is the number of years between the two years. The reverse direction — what today's money was worth in the past year — divides instead: past value = today's amount ÷ (1 + i)t. Both directions use the same growth factor (1 + i)t.
$100 in 2000 at 3% average annual inflation for 26 years (to 2026): growth factor 1.0326 = 2.1566, so $100 × 2.1566 = $215.66 today. In the other direction, $100 today was worth 100 ÷ 2.1566 = $46.37 in 2000 dollars. A dollar in 2000 buys what about $2.16 buys now — prices more than doubled, which is exactly what steady 3% compounding does over a quarter-century.
This page applies one constant average inflation rate across the whole period. Real inflation varies year by year, and no single rate captures that path — for official figures, use a published CPI series for the exact years and country. It also measures general price levels, not any single item: housing, education, and healthcare have risen faster than the average in many periods, while electronics have fallen. The result is a purchasing-power comparison, not a price quote for anything specific.
Compounding. Each year's increase applies to an already-increased price level, so the growth accelerates: 1.0326 = 2.1566. At 2% the factor over 26 years is 1.67; at 5% it is 3.56. Small rate differences compound into large ones.
Only if you enter the true average. Year-by-year CPI in most economies has ranged from near zero to double digits, so a flat 3% is a simplification. Use it for intuition and what-if comparisons; use a CPI table for historical claims.
It means $100 today buys roughly what $46.37 bought in 2000. It does not mean anyone held $46.37 — it is the same purchasing power expressed in the older year's prices.
The maths is identical — both use (1 + r)t — but the rate means something different. Present value discounts by a return or cost of capital; inflation adjustment rescales by price levels. Same formula, different question.
Yes — deflation. A negative rate shrinks the growth factor below 1, so past money is worth less today than it was then. Enter a negative rate to model a deflationary period.
Because of exactly this factor. A $30,000 salary in 2000 equals about $64,700 in 2026 dollars at 3% average inflation (30,000 × 2.1566). Comparing nominal amounts across decades without adjusting misleads in both directions.
Results are estimates only and do not constitute professional advice.