Inflation Calculator: What Will Money Be Worth?
Inflation is the silent tax on cash. At just 5% inflation, money loses half its buying power in about 14 years, at 20% (as some countries have experienced), it takes under 4 years. This tool shows both directions: what a future price will be, and what today's savings will really be worth.
How to use this tool
- Choose a mode: what a price becomes, or what your cash will really be worth.
- Enter the amount and your expected inflation rate (recent official CPI is a good starting point).
- Set the number of years and press Calculate.
- Note the \"halving time\" row, it's the most intuitive way to feel what a given inflation rate means.
Frequently asked questions
What inflation rate should I use?
Start with your country's recent official CPI (e.g. ~2–3% for the US/EU/UK in normal times; historically much higher in Pakistan, Turkey or Argentina). For long horizons, consider running the tool twice, an optimistic and pessimistic rate, to see the range.
Is inflation the same for everyone?
No. Official CPI is an average basket; your personal inflation depends on what you buy. Education, healthcare and rent often outpace headline CPI, while electronics get cheaper. If your spending is rent-and-school-fees heavy, your real inflation is likely above the official number.
How do I protect savings from inflation?
Cash in a drawer loses the full inflation rate every year. Common defences: interest-bearing accounts (recover part of it), inflation-linked government bonds, equities and real assets over long horizons. This is general information, not financial advice, the right mix depends on your situation.
What is the 'halving time' shown in the result?
It's how long until money loses half its purchasing power at that inflation rate, the rule-of-72 idea in reverse. At 7% inflation, cash halves in ~10 years. It turns an abstract percentage into something you can feel.
Why do salaries feel smaller even after a raise?
If your raise is below inflation, your real income fell. A 5% raise during 9% inflation is a ~4% pay cut in buying power. Use the buying-power mode on your salary to see what it's really worth a few years out.