How this inflation calculator works
Inflation is the rate at which prices rise. If prices go up 3% a year, something that costs 100 today costs about 134 in ten years. Money that stays in a current account keeps the same number, but buys less every year.
The calculator compounds both sides year by year: the return you earn on your money, and the inflation that eats into it. It then shows the result in today’s money, so you can compare it directly with what you have now.
The formula
Real value = Amount × (1 + return)ⁿ ÷ (1 + inflation)ⁿReal return = (1 + return) ÷ (1 + inflation) − 1Here n is the number of years, and the rates are written as decimals (3% = 0.03).
Example: €10,000 in a current account
You keep €10,000 in a current account earning 0% for 10 years, and inflation averages 3% a year. After 10 years you still have €10,000, but it buys only what €7,441 buys today. You have lost about 26% of your purchasing power, and you would need €13,439 to buy the same things as today.
How to protect your savings from inflation
- Earn a return above inflation. Deposits, government bonds, index funds and real estate can all beat inflation over time, with different levels of risk.
- Keep only an emergency fund in cash. Money you won’t need for years loses value fastest when it sits idle.
- Look at real numbers, not nominal ones. A balance that grows 4% a year while prices grow 6% is shrinking.
Where to find official inflation rates
- Euro area: the Harmonised Index of Consumer Prices (HICP) from Eurostat.
- United States: the Consumer Price Index (CPI) from the Bureau of Labor Statistics.
- Romania: the consumer price index from the National Institute of Statistics (INS).
Track inflation on your whole net worth
This calculator answers “what if”. To see what inflation actually did to your money, Total Worth tracks your real estate, cash in several currencies and investments year by year, and shows their inflation-adjusted value next to the nominal one. It is free, needs no account, and your data stays in your browser.
Frequently asked questions
What is purchasing power?
Purchasing power is how many goods and services an amount of money can buy. When prices rise, the same amount buys less, so its purchasing power falls even though the number in your account stays the same.
Which inflation rate should I use?
Use the official consumer price index for the currency your money is in: Eurostat HICP for the euro area, the US Bureau of Labor Statistics CPI for dollars, or the National Institute of Statistics (INS) for Romanian lei. For long horizons, an average of past years is a reasonable assumption.
What is a real return?
The real return is your return after inflation: (1 + nominal return) ÷ (1 + inflation) − 1. A 6% deposit with 5% inflation has a real return of about 0.95% a year, not 1%.
Does this calculator store my numbers?
No. Everything is calculated in your browser and nothing is sent to a server.
Can I track inflation on my whole net worth?
Yes. Total Worth lets you enter inflation rates per year and shows the inflation-adjusted value of your real estate, cash and investments over time, for free and without an account.