Inflation Impact Calculator
Calculate how inflation impacts your savings, income, and expenses over time. Understand purchasing power changes and plan for the future.
Step 1: Money & Time Period
Understanding Inflation Impact
Inflation reduces the purchasing power of money over time. This calculator shows how much your money today will be worth in the future, or how much you’ll need to maintain your current lifestyle.
Step 2: Inflation & Settings
About Inflation Rates
Historical average inflation rates vary by country and time period. The UK average since 1989 is around 2.8%, while the US average is about 2.5%. Higher inflation periods significantly reduce purchasing power over time.
Inflation Impact Results
Future Value of Your Money
Historical Inflation Comparison
| Country/Period | Avg. Inflation | Value After 10 Years | Purchasing Power Loss | Years to Halve |
|---|
Year-by-Year Inflation Impact
Inflation Impact Formula
Future Value = Present Value × (1 + Inflation Rate)Years
This formula calculates how much money you’ll need in the future to have the same purchasing power as today. The impact compounds annually, meaning inflation affects not just the principal but also the inflation from previous years.
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