Inflation calculator

This inflation calculator works out how much purchasing power an amount of money loses over a number of years at a given annual inflation rate, and what that same amount will cost in the future.

Money sitting still loses value

Cash that isn’t invested doesn’t stand still — inflation quietly erodes what it can buy. At 3% annual inflation, 10,000 € today is worth only around 7,440 € in today’s terms after 10 years, even though the number in the account hasn’t changed.

Why this matters for saving and investing

Comparing a savings account’s interest rate against inflation shows whether your money is really growing or just losing value more slowly. This calculator is for guidance only and isn’t financial advice.

FAQ

How is future purchasing power calculated?

By dividing the amount by (1 + annual inflation) raised to the number of years. The result is what today's amount will be worth, in today's money, after that period.

What inflation rate should I use?

A common long-term reference is 2-3% a year for developed economies, matching most central banks' target. Use a higher rate if you expect inflation to run hotter.

Does this account for compounding?

Yes. Inflation compounds year over year just like interest, so losses in purchasing power accelerate the longer the money sits idle.