7 min read
2026-02-01
Inflation is a sustained increase in the general price level, which reduces the purchasing power of money. If inflation is 8% per year, then in a year $1,000 will buy only as much as $926 does today.
The calculator shows how the real value of money changes with inflation:
Future value — how much your money will be worth in N years
Past value — the equivalent of a sum in the past
Loss of purchasing power — the percentage of devaluation
Real value = Nominal amount / (1 + inflation)^n
| Inflation | After 5 Years | After 10 Years | After 20 Years |
|---|---|---|---|
| 5% | $784 | $614 | $377 |
| 8% | $681 | $463 | $215 |
| 12% | $567 | $322 | $104 |
*Real value of $1,000 at different inflation levels*
Invest at returns above inflation
Diversify assets
Consider protective instruments
Calculate the impact of inflation with the Inflation Calculator.
See also: Investment Calculator, Deposit Calculator