Inflation Calculator
Measure how inflation changes the value of money.
At 3.0% average inflation, what costs £10,000 today is expected to cost £13,439 in 10 years.
About this calculator
Inflation steadily reduces what a pound can buy. This calculator works two ways: what a basket of expenses costing a certain amount today will likely cost in the future, and what a future sum is worth in today's purchasing power.
Use it alongside the savings and pension calculators: a return that merely matches inflation preserves purchasing power but builds no real wealth — the gap above inflation is your real return.
Frequently asked questions
What inflation rate should I enter?
The Bank of England targets 2% CPI, but actual inflation varies year to year and spiked well above target recently. Use a realistic long-run average and test a range.
What is a 'real' return?
It's your investment return minus inflation — the growth in actual purchasing power. A 7% return with 3% inflation is about 4% real.
Related calculators
These calculators are for general information and planning only. They use the assumptions you enter and do not constitute financial, tax, or investment advice. Tax figures are simplified estimates for the stated tax year. Returns are not guaranteed; verify figures independently before making decisions.