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Purchasing power calculator

Enter an amount, inflation rate and years to see what your money will actually buy in the future.

Inputs

Results update live as you type.

Future buying power
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Enter values to calculate.

Value lost
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Lost share
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Formulas: future value = amount / (1 + inflation)^years. Money under the mattress shrinks every year.
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Inflation is a quiet tax

At 3% inflation, money loses roughly 26% of its buying power in 10 years and 45% in 20. Cash feels safe because the number never drops, but what the number buys shrinks relentlessly.

Beating inflation

Savings accounts rarely beat inflation, which is why long-term money usually goes into assets: stocks, bonds or property. The gap between your return and inflation is your real growth.

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Purchasing Power Calc FAQs

How does inflation reduce purchasing power?
Divide by (1 + inflation)^years. $10,000 at 3% inflation for 10 years becomes $10,000 / 1.03^10 = $7,441 of today's buying power.
What inflation rate should I use?
Use your country's long-term average (often 2 to 4%) for planning, or the current CPI rate for near-term estimates. Central bank targets are usually 2%.
Is this the same as future value?
It is the inverse: future value grows money at a return rate, this shrinks it at the inflation rate. Combine both for real (inflation-adjusted) returns.
Why does cash lose value if the amount stays?
Because prices rise around it. The $10,000 bill count never changes, but bread, rent and fuel cost more each year, so the stack buys less.
Is my data uploaded anywhere?
No. Every calculation happens in your browser with JavaScript. Nothing you enter leaves your device.
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