Inflation Calculator
See what an amount of money from one year is worth in another year's dollars — project future purchasing power or look back at historical value, using an average annual inflation rate.
What Is Inflation?
Inflation is the general rise in the price of goods and services over time — and its flip side, the gradual decline in what a fixed amount of money can buy. When prices go up, the same dollar buys less than it used to.
Central banks, including the Bank of Canada, actively manage inflation rather than letting it run unchecked. Canada's long-term target has generally been around 2% per year — low enough to avoid destabilizing the economy, but not zero, since a small amount of steady inflation is considered normal and even healthy for economic growth.
Inflation isn't the same every year, though. Some years run well above the 2% target (2022 saw Canada's inflation rate hit 6.8%), while others run below it. That's why comparing money across specific years, rather than assuming a flat rate always applies, gives a more accurate picture.
Inflation Details
2% is the Bank of Canada's long-term inflation target. Actual annual rates vary — use a different rate to model higher or lower inflation scenarios. Source: Statistics Canada Consumer Price Index (CPI) data.
How It Works
- Enter the amount and years — Enter the starting amount, the starting year, and the ending year you want to compare.
- Choose an inflation rate — Use the 2% default as a rough long-term average, or enter a different rate to model higher or lower inflation.
- See the adjusted value — The calculator compounds the rate over the year difference, forward or backward, to show what the amount is worth in the other year's dollars.