Enter the total amount of money, reference year, and target or current year. The buying power calculator will display the total dollar value with respect to the current year.

Buying power is a term used in macroeconomics to describe the effective purchasing power a currency has from one year to the next. In other words, if you had 1$back in 1913, what is the equivalent amount that dollar is worth today in 2020. You might be asking why would the value of that dollar change? That’s due to inflation. Inflation is the ever-decreasing power of currency due to the rising prices of goods. For example, back in 1900 1$ could buy you a whole box of candy, today, that 1\$ would only get you 1 stick of candy due to inflation. Why inflation occurs is an entire subject itself.