How it works
Inflation is the silent tax on cash: at just 2% a year — the European Central Bank’s target — prices double roughly every 35 years, and money sitting in a non-interest account loses a third of its purchasing power in 20 years. At the 8–10% peaks parts of Europe saw in recent years, the erosion is brutally fast.
This inflation calculator shows both sides of the coin: what today’s prices will look like in the future at your assumed rate, and what today’s money will actually buy then. Pair it with the compound interest calculator to see whether your savings rate actually outruns inflation — the gap between the two rates is your real return.
How inflation compounds
FuturePrice = Amount × (1 + rate)^years
PurchasingPower = Amount ÷ (1 + rate)^yearsThe same compounding maths as interest, working against you. A 2.5% rate over 10 years multiplies prices by 1.28 — a 28% increase.