Inflation Calculator

How to use the inflation calculator

1. Fill in the fields — they start with a worked example.
2. Read the answer, and the arithmetic shown beneath it.
3. Copy the results, or adjust the inputs to compare scenarios.

About this tool

Inflation compounds, which is why modest-sounding rates matter over long periods: at 3%, prices roughly double in 24 years, and money held at zero interest loses half its buying power over the same span.

Two figures are shown because people mean different things by the question. The <em>equivalent cost</em> is what something priced at today's amount would cost later. The <em>remaining buying power</em> is what today's amount would still buy then — the mirror image, and the one that makes the effect on savings obvious.

The rate you enter is assumed constant, which no real economy manages. Use it for a sense of scale rather than a forecast.

Common uses

• Seeing what a salary needs to be in ten years to match today.
• Understanding what cash loses by sitting still.
• Setting a long-term savings target in realistic terms.

Frequently asked questions

What inflation rate should I use?

Many central banks target around 2%. Recent years have run higher in most countries. Try a range rather than trusting one figure.

Why do the two results differ?

One asks what a thing will cost, the other what your money will buy. They are reciprocals of each other, not the same number.