How the calculation works
Inflation compounds: each year prices rise by the rate on top of the new, higher price. The calculator applies the rate once for every year.
Future price = amount × (1 + rate ÷ 100) ^ years
Worth in today’s money = amount ÷ (1 + rate ÷ 100) ^ years
Buying power lost = 1 − 1 ÷ (1 + rate ÷ 100) ^ years
The ^ sign means "to the power of".Worked example
1,000 at 2.5% inflation for 10 years.
- The factor is 1.025 ^ 10 = 1.2801.
- Something that costs 1,000 today costs 1,000 × 1.2801 = 1,280.08.
- 1,000 received then is worth 1,000 ÷ 1.2801 = 781.20 in today’s money.
- Buying power lost: 1 − 1 ÷ 1.2801 = 21.9%.
What this calculator does not include
- Interest or investment return on the money.
- A rate that changes from year to year.
- Price changes that differ per product, such as housing or energy.
Amounts are rounded for display only; the calculation itself is not rounded. Results are estimates for information, not financial advice. Last updated: 12 November 2026.
Frequently asked questions
How does inflation reduce what my money is worth?
When prices rise, the same amount buys less. With 2.5% inflation a year, something that costs 1,000 today costs about 1,280 in ten years, so 1,000 then buys what about 781 buys today.
What is the difference between the price and the buying power?
The price shows how much more you will pay for the same goods. The buying power (worth in today’s money) shows how much less the same amount of money can buy. They are two sides of the same rate.
Which inflation rate should I use?
Use the rate you expect on average over the period. Past yearly rates differ by country and by year, so look up the official figure from your statistics office for a past period.
Does this include interest on my savings?
No. It only shows the effect of inflation. To see growth after inflation, use the compound interest calculator with its inflation option.
Is inflation really constant?
No. Real inflation changes from year to year. The calculator uses one average rate, which is a simplification.