> calculator inflation
Inflation and purchasing power
What your money will still buy in a few years, what your interest really earns after inflation, and by how many percent per year a price has risen. You set the inflation rate yourself, because nobody knows the future one.
An assumption, not a forecast. 2% is the European Central Bank’s target for the euro area; the actual rate was much higher in some years. Whole years from 1 to 100.
The interest on your savings account, fixed deposit or savings plan, before tax. This tool does not deduct tax on interest.
For example a bread roll, the rent or a monthly ticket. The currency does not matter, as long as both prices are in the same one.
Related: Interest and savings plan · Percentage calculator · Subscriptions and fixed costs · Household budget book (German)
The calculation runs only on your device. There are no built-in inflation figures, nothing is loaded.
How it works
- 01Choose a tab: purchasing power, real interest or price rise.
- 02Enter amounts and percentages, with a decimal point. The inflation rate is your assumption.
- 03The result appears at once and can be copied.
Purchasing power. At 2% inflation, prices rise by a factor of 1.02 every year. After 10 years that is 1.02 to the power of 10 = 1.219. €10,000 then only buys as much as €10,000 ÷ 1.219 = €8,203.48 today. The same then costs €12,189.94; purchasing power has fallen by 17.97%.
Real interest. 3% interest at 2.5% inflation: (1.03 ÷ 1.025 − 1) × 100 = 0.49%. The rule of thumb 3 − 2.5 = 0.5% is close; at high rates it differs more. If the real rate is negative, your money grows but buys less.
Price rise. A bread roll cost €1.20 eight years ago and €1.80 today. That is 50% more, on average 5.20% per year. The average is not 50 ÷ 8 = 6.25%, because each increase builds on the previous one.