Inflation Calculator
Calculate the impact of inflation on money value
Inflation Calculator - Work Out Purchasing Power
Our inflation calculator shows how inflation affects the value of your money over time. See what your savings will be worth in 5, 10 or 20 years at different inflation rates. View the loss of purchasing power year by year.
How does inflation work?
Inflation is a rise in the general level of prices in the economy. That means the same amount of money buys less over time. Inflation of 5% per year means that after 10 years your $1000 will be worth only about $614 in today's prices.
How to protect savings from inflation?
- Savings accounts - Basic protection, but often below inflation
- Government bonds - Inflation-linked bonds protect capital
- Stocks - Tend to outpace inflation over the long term
- Property - Property prices usually rise with inflation
- Gold and precious metals - Traditional inflation hedge
Frequently asked questions
What is the current inflation rate?
The current inflation rate changes every month. Check your country's official statistics office (e.g. BLS in the US, ONS in the UK).
Why does inflation matter?
Inflation reduces the purchasing power of savings. If your money doesn't grow faster than inflation, you lose real value.
Is deflation better than inflation?
Moderate inflation (2-3%) is considered healthy for the economy. Deflation (falling prices) can lead to recession.