Precis

Inflation Calculator

See what today's money will really be worth — or what a past amount would take today.

  • Instant results
  • Private: runs in your browser
  • Free, no sign-up
The Bank of England targets 2% inflation over the long run — the actual rate varies year to year, so adjust to match your assumption.
Future value
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How does an inflation calculator work?

Inflation erodes purchasing power over time — the same £1,000 buys less in 10 years than it does today, even if the number in your account doesn't change. This calculator applies a compound annual inflation rate forward (what will today's amount cost/be worth in the future) or backward (what would a past amount be worth in today's money). The Bank of England targets 2% inflation over the long run, though the real figure moves year to year, so the assumption you choose matters more than the maths itself.

Frequently asked questions

What inflation rate should I use?

The Bank of England targets 2% inflation over time, though the actual rate moves year to year — use the current CPI figure for a realistic near-term estimate, or a long-run average for longer projections.

Why does inflation matter for savings?

Cash sitting in an account earning less interest than the inflation rate is quietly losing purchasing power every year, even though the number on the balance never goes down — this is why comparing savings rates to inflation matters.

What's the difference between inflation and interest rates?

Inflation measures how much prices rise over time; interest is what you earn (or pay) on money. Your "real" return is roughly your interest rate minus inflation — what actually matters for purchasing power.

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