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Finance

Inflation Calculator: What Will Your Money Be Worth?

Inflation is the quietest way to lose money: your balance stays the same, but what it buys shrinks every year. This calculator shows what an amount of today is worth in future purchasing power — and how much you will need then to afford what it buys today. The scale surprises most people: at 2 % inflation (the target of most central banks) money loses about half its purchasing power in 35 years; at 4 % that happens in just 18. That is why the question is never just what return you earn, but whether it beats inflation — the difference, your real return, decides whether wealth grows or shrinks.

Häufige Fragen

How much value does money lose at 2 % inflation?

About 18 % in 10 years, roughly a third in 20 years, and about half in 35 years — like compound interest in reverse.

What is real return?

Your return minus inflation. Only a positive real return actually grows your wealth; 3 % interest during 4 % inflation is a real loss.

What inflation rate should I use?

For long-term planning 2 % (the central-bank target) is a common baseline; historical averages in developed economies are roughly 2–3 %. Try higher values as stress tests.

Does a savings account protect against inflation?

Usually not — savings rates often sit below inflation, so the balance loses real value. Protection requires returns above inflation over time.