Free Inflation Calculator
Enter an amount, an inflation rate and a time period to see what that money will be worth in the future — and how much purchasing power is quietly eroded over time.
Inflation Calculator
Mr B says: Inflation is the invisible tax on savings sitting in a low-interest account. If your savings rate is lower than inflation, your money is losing purchasing power every year.$
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Inflation impact
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⚠️ This tool is for general guidance only and is not financial advice.
Common questions
Inflation questions
Inflation is the general rise in prices over time. As prices rise, each dollar buys less than it did before. At 3% annual inflation, $100 today has the purchasing power of about $74 in 10 years. This is why savings accounts that pay less than the inflation rate are effectively losing real value every year.
In most developed economies, central banks target around 2% per year. Actual inflation varies — periods of 3–5% are common after supply shocks or economic disruptions. Hyperinflation (very high inflation) is much rarer and typically occurs during extreme economic or political crises.
By investing in assets that historically grow faster than inflation over the long term, such as diversified equities, property, and inflation-linked bonds. Cash in a savings account that earns less than the inflation rate loses purchasing power every year. Spreading across asset classes is the standard approach for managing inflation risk.
Divide the nominal amount by (1 + inflation rate) raised to the power of the number of years. For example: $10,000 in 20 years at 3% inflation = $10,000 ÷ (1.03)^20 = approximately $5,537 in today's purchasing power. This calculator does this automatically.