Inflation Calculator – Help Guide
The Inflation Calculator shows how the purchasing power of money changes over time. It helps you understand how much a dollar amount today will be worth in the future. Or what a past amount is worth in today's dollars.
How to Use This Tool
- 1
Enter the starting amount
Enter the dollar amount you want to adjust for inflation.
- 2
Enter the start year
Enter the year the amount is from (past or present).
- 3
Enter the end year
Enter the year you want to convert to.
- 4
Enter the inflation rate
The default uses Canada's historical average (~2%). You can customize this.
- 5
Review the result
The calculator shows the equivalent purchasing power in the target year.
Helpful Tips
- •Canada's long-term average inflation rate is approximately 2–3%. The Bank of Canada's target is 2%.
- •Use a higher rate (3–4%) for conservative retirement planning to account for healthcare cost inflation.
- •Investment returns should be evaluated in real terms (after inflation). A 6% return with 3% inflation is a 3% real return.
- •Inflation affects different spending categories at different rates. Food and housing often rise faster than the general CPI.
Frequently Asked Questions
Ready to get started?
Open the Calculator