Example 1 — 10 years at 5%
- Amount: 10,000
- Inflation: 5%
- Years: 10
Purchasing power ≈ 6,139.13
Erosion ≈ 3,860.87 (38.61%)
After a decade at 5% a year, a little over 60% of real value remains.
Purchasing power under inflation
See how much real value is left from today’s amount after years at an assumed constant annual inflation rate.
We use a constant annual inflation rate: future purchasing power = amount ÷ (1 + inflation)^years. It's a what-if with a flat rate — not an official CPI forecast. Change currency in the header if you need another one.
Result
Enter data and click Calculate.
How results are calculated
Purchasing power = amount ÷ (1 + inflation/100)^years — today’s amount in future prices at constant inflation.
Erosion = amount − purchasing power; Erosion % = erosion ÷ amount × 100%.
How to use the calculator
- Enter today’s amount in the header currency.
- Enter the assumed average annual inflation (%).
- Set the horizon in years.
- Read purchasing power, absolute erosion, and percent erosion.
Usage examples
Example 2 — Long horizon, lower inflation
- Amount: 50,000
- Inflation: 3%
- Years: 20
Purchasing power ≈ 27,683.79
Erosion ≈ 22,316.21 (44.63%)
Even “moderate” inflation cuts purchasing power hard over long periods.
Example 3 — High inflation, 5 years
- Amount: 1,000
- Inflation: 8%
- Years: 5
Purchasing power ≈ 680.58
Erosion ≈ 319.42 (31.94%)
A short horizon at a high rate still removes about one third of value.
FAQ
How much real value is left from my amount?
How much real value today’s amount keeps after n years at a constant annual inflation rate — in other words, how much purchasing power it loses.
When is a constant inflation rate a fair assumption?
For long-horizon scenarios or comparing options. Actual inflation varies year to year.
What simplification does the model use?
One average annual rate with no seasonality, basket changes, or local price differences.
What usually confuses the reading?
The usual mix-up is comparing a nominal account balance to purchasing power without using the same rate — or mistaking a monthly rate for an annual one.
Can I change the currency?
Yes — pick another one in the page header. The result is real purchasing power in that same currency, not an FX forecast.
What should you compare with inflation?
Compound interest, deposit gain, and savings interest — to see whether a nominal return keeps up with purchasing-power erosion.
What does the result not say?
It does not forecast wage growth or investment returns — only purchasing-power erosion at constant inflation.
When should you not use this model?
When you need an official CPI figure for a specific period or a central-bank short-term forecast — here you only get a constant-rate estimate.