Inflation Calculator

Inflation is the general rise in prices over time. When prices go up, the same amount of money buys less — its purchasing power falls.

It compounds the yearly inflation rate: a price grows by (1 + rate) every year. Purchasing power is the opposite — today's money divided by that same factor.

Central banks in many countries aim for about 2% a year. Over long periods, 2–3% is a common planning assumption, but real inflation can be much higher in some years.

Cash in a 0% account loses value every year. Many people keep only their emergency fund in cash and invest long-term money in assets that have historically grown faster than inflation, like broad stock ETFs.