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.
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 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.
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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