Inflation calculator
What your money buys later, at a given rate of inflation. Cash is not the safe option; it is the certain one.
£100 becomes
£48
Purchasing power lost
52%
Half gone after
23 yrs
At 3% a year, money loses roughly half its purchasing power in 23 years. Sitting in cash is a decision, and it has a cost.
The thing most people get wrong
At 3% a year, money loses roughly half its purchasing power in 23 years. Your balance never falls. What it buys does. That is the one risk that is effectively guaranteed to materialise, and it never appears as a loss on any statement.
How to use it properly
- 1Set the inflation rate. 2 to 3% is the long-run target in most developed economies; recent years have been higher.
- 2Drag the years out to your actual horizon.
- 3Read the purchasing power lost. That is what doing nothing costs.
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<p style="font-size:13px;margin-top:6px">Powered by the <a href="https://steadyshares.com/tools/inflation-calculator">inflation calculator</a> from <a href="https://steadyshares.com">SteadyShares</a>.</p>