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Free tool

Inflation calculator

See what inflation does to your money over time: what the same shopping will cost, what cash left still is worth in today's terms, and whether your savings rate keeps up. Free, no sign-up, nothing leaves your browser.

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This assumes both rates stay the same every year, which they won't. Use your own figures; the starting ones are only examples. Tax on interest isn't included.

What £1,000.00 of shopping costs in 10 years
£1,343.92
£1,000.00 kept as cash is worth, in today's money
£744.09
Savings balance
£1,480.24
In today's money
£1,101.44
Real interest rate
0.97%
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What inflation does to money

Inflation is the general rise in prices over time. If prices rise 3% a year, something that costs 100 today costs about 103 next year, so the same banknote buys a little less each year. Money that sits still loses value in real terms, even though the number doesn't change.

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Real interest: are your savings keeping up?

What matters for savings is the gap between the interest you earn and inflation, called the real rate. If savings earn 4% while prices rise 3%, your money grows about 1% a year in real terms. If they earn less than inflation, your savings shrink in what they can buy, even as the balance goes up.

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