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Inflation erodes the purchasing power of money over time, meaning your money buys less in the future than it does today. Our inflation calculator helps you understand how inflation affects your savings, investments, and future financial goals, enabling you to make informed decisions about protecting your wealth.
Enter a current amount, expected inflation rate, and time period. The calculator shows how much that amount will be worth in the future considering inflation, and how much you need to save today to maintain the same purchasing power in the future.
While your investments may show nominal returns, inflation can significantly reduce their real value. For example, a 7% return in a 3% inflation environment gives only 4% real return. Our calculator helps you understand this crucial difference.
Invest in assets that historically outpace inflation like stocks, real estate, or inflation-protected securities. Diversify your portfolio, consider systematic investment plans, and regularly review your inflation assumptions. Long-term investing is key to overcoming inflation's effects.
Most central banks target 2-3% annual inflation as it indicates a healthy economy without causing excessive price increases.
Inflation reduces the real return on investments. You need returns higher than inflation to grow your purchasing power.
Use long-term average inflation rates (3-4%) for planning, but consider current rates for short-term calculations.