Investment Calculators
Inflation Calculator
See how inflation erodes purchasing power, what a sum today will buy in the future and what you would need to keep pace.
What it will buy in today's money
$27,684
- Amount needed to keep pace
- $90,306
- Purchasing power lost
- $22,316
- Share of value lost
- 44.6%
How this calculator works
Real value = amount ÷ (1 + i)^n
- i
- the annual inflation rate
- n
- the number of years
Example calculation
Illustrative example — not advice
Worked example — the inflation calculator as it loads, using the default figures below.
- 01Enter amount today: $50,000.
- 02Enter annual inflation: 3%.
- 03Enter years: 20 years.
- 04Read the what it will buy in today's money from the results panel: $27,684.
What it will buy in today's money: $27,684. Amount needed to keep pace: $90,306. Purchasing power lost: $22,316. Share of value lost: 44.6%.
These figures come straight from the calculator above running on the values listed, so you can retype them and confirm every number yourself. Change any input and the results update immediately. Illustrative only — not a quote, offer or recommendation.
Important considerations
- Your personal inflation rate depends on what you actually spend money on.
- Long horizons magnify small differences in the assumed rate.
Related calculators
- Future Value CalculatorWhat a sum today is worth in the future.
- Present Value CalculatorWhat a future sum is worth today.
- Retirement CalculatorProject your retirement balance and the income it could sustain.
- Savings Goal CalculatorMonthly saving needed to hit a target.
- Investment CalculatorProjected value of contributions and returns over time.
- ROI CalculatorTotal and annualised return on any investment.
Terms used here
Frequently asked questions
How do I protect against inflation?
Holding assets expected to grow faster than prices, rather than cash, is the usual answer — at the cost of higher volatility.
Disclaimer
Legamoney calculators are educational tools. Results are estimates based on the figures you enter and do not constitute financial, tax or legal advice.
Last reviewed 2026-08-01