Calculate the purchasing power loss due to inflation. How much will your money be worth in the future? Real value, future amount, and progress table — with calculation steps and chart.
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Calculate purchasing powerWhat will my money be worth in the future?
For illustration only – your own calculation is what counts.
Explanation
How Inflation Calculator works
The inflation calculator compounds an assumed constant annual price change over several years. It shows either the remaining purchasing power of an unchanged nominal amount or the nominal future amount calculated to have the same purchasing power as today.
Purchasing power (real value)Real value = Amount / (1 + i)^t
Today's amount is divided by the inflation factor. i is the annual inflation rate as a decimal, t the number of years. The result shows future purchasing power in today's euros.
To maintain today's purchasing power in the future, the amount must be multiplied by the inflation factor. The result shows how many euros will be needed in t years.
Multi-year price changes are compounded, not calculated as the inflation rate times the number of years. Under a constant 2% assumption, 55.21% of today’s purchasing power remains after 30 years; at 0% it is unchanged, and at a negative rate it rises in the model.
Knowledge
Understanding inflation and purchasing power
Why even low inflation has significant effects on savings over long periods.
Nominal value and purchasing power answer different questions: an account balance can remain unchanged while the quantity of goods it can buy changes. The calculator holds the nominal amount or annual rate constant and isolates this mathematical effect.
Price factor after t years: (1 + inflation rate)^t.
The scenario accounts for neither personal basket weights nor changing annual rates.
Practice
Practical examples
For illustration only – your own calculation is what counts.
Purchasing power of EUR 1,000 in 10 years
What will EUR 1,000 today be worth in 10 years if inflation is 2% per year?
Result: At 2% inflation, EUR 1,000 will be worth only approx. EUR 820 in 10 years (in today's purchasing power). The purchasing power loss is approx. 18%.
2% inflation€820.35
3% inflation€744.09
5% inflation€613.91
How much will I need in 20 years?
Today I need EUR 2,000 monthly for living expenses. How much must I earn in 20 years to maintain the same standard of living (at 2.5% inflation)?
Result: At 2.5% annual inflation, I will need approx. EUR 3,277 in 20 years to achieve today's purchasing power of EUR 2,000.
Cost at 2% inflation€1,485.95
Cost at 3% inflation€1,806.11
Cost at 5% inflation€2,653.30
Comparing different inflation rates
EUR 10,000 in savings at 2% vs. 5% inflation over 15 years — how large is the difference?
Result: At 5% inflation, only approx. EUR 4,810 real purchasing power remains after 15 years. At 2% it would be approx. EUR 7,430 — a difference of over EUR 2,600.
Long-term wealth erosion
EUR 50,000 sits in an account without interest for 30 years. Average inflation is 2%.
Result: After 30 years at 2% inflation, EUR 50,000 is worth only approx. EUR 27,604. Almost half of the purchasing power is lost.
Pension gap due to inflation
A planned pension of EUR 1,500 monthly — what will it be worth in 25 years at 2% inflation?
Result: Under this constant assumption, EUR 1,500 has purchasing power of EUR 914.30 after 25 years. The purchasing power loss is EUR 585.70, or 39.05%.
Notes
Common mistakes
Confusing nominal and real value
The nominal value is the absolute euro amount. The real value is the actual purchasing power after deducting inflation. EUR 100,000 in an account is nominally unchanged, but after 20 years at 2% inflation is only worth approx. EUR 67,000 in real terms.
Always distinguish between nominal and real value — the inflation calculator shows the real purchasing power loss.
Using historical average inflation as a reliable forecast
A constant input rate simplifies the path. Historical values, monetary-policy targets, and personal expectations are not guaranteed future inflation rates.
Calculate several reasonably selected assumptions separately and explicitly treat every result as a scenario, not a forecast.
Not considering personal inflation
The CPI measures an average basket of goods. Personal inflation can differ significantly: those who spend a lot on rent and energy feel price increases more strongly than the CPI average suggests.
Consider the official average rate and your own spending structure separately; personal price development may be higher or lower.
Confusing purchasing power loss with price increase
At 2% inflation, prices rise by 2%, but purchasing power falls by approx. 1.96% (1 - 1/1.02). The difference is small but relevant at high rates or long periods: 50% inflation does not mean 50% purchasing power loss but approx. 33%.
For one year, purchasing power loss = 1 - 1/(1 + inflation rate); over multiple years the compounded price factor is in the denominator.
Misinterpreting negative inflation (deflation)
With a negative inflation rate, purchasing power rises because prices fall. The calculator then shows a higher real value than the nominal input value. Deflation is rare but not impossible.
A negative input rate is compounded as a constant deflation assumption; the calculator reports the resulting purchasing power gain as a positive value.
FAQ
Frequently asked questions
What is inflation?
Inflation describes the general increase in the price level over time. When prices rise, the purchasing power of money decreases — for the same amount, you receive fewer goods and services than before.
How is inflation measured?
In Germany, the Federal Statistical Office measures average price development with the Consumer Price Index (CPI). Price changes for the categories in a comprehensive basket are weighted by the average expenditure shares of private households.
Is the entered inflation rate a forecast?
No. The input is a constant calculation assumption for a scenario. Actual inflation rates fluctuate over time; the result does not predict future price development.
Why does the purchasing power of my money decline?
When the general price level rises, you can buy less with the same amount of money. EUR 100 today has more purchasing power than EUR 100 in 10 years, because prices for goods and services have risen in the meantime.
How can I protect my savings from inflation?
The calculator does not provide investment advice. It only shows the nominal future amount that would have the same calculated purchasing power at the assumed constant rate. It does not assess whether an investment reaches that amount after costs, taxes, and risks.
What is the difference between real and nominal return?
Nominal means an amount of money or return without a purchasing-power adjustment. Real means adjusted for inflation. For the same period, the exact relationship is: real return = (1 + nominal return) / (1 + inflation rate) - 1.
What does deflation mean?
Deflation is a sustained decline in the general price level. In the model, a negative input rate increases remaining purchasing power and lowers the future amount needed for the same purchasing power.
Does inflation apply equally to all goods?
No. The CPI represents an average, weighted price development. Personal price development can differ because households have different expenditure shares and buy different products.
Limits
Limitations
Assumption of a constant inflation rate: The calculator uses a constant annual rate. In reality, inflation fluctuates significantly from year to year.
No inflation forecast: Future inflation is unpredictable. The result shows a mathematical scenario, not a prediction.
Based on the average basket of goods: Personal inflation rate may vary depending on consumption patterns and place of residence.
No individual price paths: the calculator processes one uniform annual rate, not different developments for individual goods or services.
The ECB describes its symmetric medium-term 2% target and the HICP as the relevant index for the euro area; the target is not a guarantee for individual years.
View sourceRetrieved: 07/23/2026 · Verified on: 07/23/2026 · Primary source
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