Inflation calculator
Inflation compounds exactly the way interest does, in the other direction.
%
Today's money, in future purchasing power
5536.76
- What you would need then to match it
- 18 061.11
- Purchasing power lost
- 4463.24
- Share of value lost
- 44.63 %
- Years for money to halve in value
- 23.45
Show the working
- Amount today = 10 000
- Annual inflation = 3
- Years = 20
- factor = (1 + 3/100)^20 = 1.806 11
- Today's money, in future purchasing power = 10 000 / 1.806 11 = 5536.76
- What you would need then to match it = 10 000 * 1.806 11 = 18 061.1
- Purchasing power lost = 10 000 - 5536.76 = 4463.24
- Share of value lost = 4463.24 / 10 000 * 100 = 44.6324
- Years for money to halve in value = 3 > 0 ? log(2, 1 + 3/100) : 0 = 23.4498
Values are shown to six significant figures here; the arithmetic itself runs on exact fractions and is only rounded where a number is printed.
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The formula
- real value = amount / (1 + inflation)^years
- nominal equivalent = amount x (1 + inflation)^years
Official inflation is an average across a basket. Your own basket may inflate faster or slower.
This is arithmetic, not financial advice. Real products carry fees, tax treatment and terms that no formula captures.