Inflation calculator

With inflation, the same amount buys less later. Enter an amount, an inflation rate and a period to see how much purchasing power is left.

How this is calculated

What it calculates

How much purchasing power an amount still has after a number of years of constant inflation.

Your inputs

Amount: the sum in today’s money.
Inflation rate: by what percent prices rise per year on average. This is an assumption, not a forecast.
Period: how many years ahead you calculate.

The calculation

Purchasing power = amount ÷ (1 + rate)^years
Price of the same purchase = amount × (1 + rate)^years

What the result means

Money left idle without interest keeps its number but loses purchasing power. Whether interest makes up for it is shown by the purchasing power calculator.

Example

Default values: €1,000, 2 percent, 20 years. Purchasing power: €1,000 ÷ 1.02²⁰ = €673. Loss: 32.7 percent. A purchase that costs €1,000 today then costs €1,486.

Inflation measures how much prices rise on average. Your own shopping basket can get more expensive faster or more slowly.

The full explanation is in the lesson Inflation.

Source for the inflation target: ECB, monetary policy strategy statement 2025 ↗

Frequently asked questions

Why does money lose purchasing power even though the amount stays the same?

Because prices rise. For the same amount you get fewer goods and services after a few years.

Which inflation rate should I enter?

An assumption, not a forecast. The ECB aims for 2 percent over the medium term. Try several values, for example 2 and 4 percent.