How does inflation reduce buying power?

As prices rise, each unit of currency buys less. The real value of a fixed amount after a number of years is amount ÷ (1 + rate)^years. At 3% inflation, money loses about a quarter of its buying power over 10 years.

How much will my money be worth in the future?

Enter the amount, an annual inflation rate and the number of years. The calculator shows the real value — what today's money will actually buy then — using annual compounding of the inflation rate.

What inflation rate should I use?

Central banks often target around 2%. Many calculators use 3% as a long-run average, but inflation varies year to year and country to country, so try a range to see best and worst cases.

Are my numbers uploaded?

No. The inflation impact calculator runs entirely in your browser. Your figures are processed locally and never sent to a server.

Inflation Impact Calculator

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The Inflation Impact Calculator shows how inflation quietly eats into the buying power of money you hold. Enter an amount, an annual inflation rate and a time horizon, and it reveals what today’s money will really be worth in the future — and how much you’d need to keep pace.

How inflation erodes value

Inflation compounds. The real value of a fixed amount after a number of years is:

real value = amount ÷ (1 + rate)^years

At 3% inflation, £1,000 held for 10 years has the buying power of only about £744 in today’s terms — roughly a quarter of its purchasing power gone, just by sitting still.

Two views

The calculator shows both sides of the coin:

Real value — what today’s money will actually buy in the future.
Amount needed — amount × (1 + rate)^years, i.e. how much you’d need in the future to match today’s buying power.

This is why cash left uninvested tends to lose value in real terms, while assets that grow faster than inflation preserve it. Try different rates to see best and worst cases. Everything is calculated locally in your browser.