Enter an amount, an average annual inflation rate (check your country’s official figure) and the years. You will see the future price and how much your saved money erodes.
The preloaded values are an example: replace them with your own figures.
What costs $1,000.00 today would cost
With these figures, with average inflation of 4,0% a year, in 10 years you would need $1.480,24 to buy what you buy today with $1,000.00. If you keep $1,000.00 without it earning anything, its purchasing power would be equivalent to $675,56 in today’s money.
How your saved money erodes
| Year | Cost of the same thing | Purchasing power of your money |
|---|---|---|
| Today | $1.000,00 | $1.000,00 |
| Year 1 | $1.040,00 | $961,54 |
| Year 2 | $1.081,60 | $924,56 |
| Year 3 | $1.124,86 | $889,00 |
| Year 4 | $1.169,86 | $854,80 |
| Year 5 | $1.216,65 | $821,93 |
| Year 6 | $1.265,32 | $790,31 |
| Year 7 | $1.315,93 | $759,92 |
| Year 8 | $1.368,57 | $730,69 |
| Year 9 | $1.423,31 | $702,59 |
| Year 10 | $1.480,24 | $675,56 |
Results are for reference only and are not actual figures. Values depend on the country, the financial institution, taxes and current laws, and must be validated with an authorized financial institution. Banco.guru is an educational guide to what can be achieved; it does not offer products or personalized financial advice.
Tips for using this result
- Use your country’s official inflation: INEC (Ecuador), INEGI (Mexico), DANE (Colombia), INEI (Peru), INDEC (Argentina), INE (Chile).
- If your savings earn less than inflation, you lose purchasing power.
- For long-term goals, adjust the goal amount for inflation.
- Compare with the real return of your savings.
What is inflation and how does it affect you?
Inflation is the general rise in prices over time. When there is inflation, the same money buys less: that is the loss of purchasing power. It is usually measured with the Consumer Price Index (CPI), published by each country’s official statistics institute.
What does this tool calculate?
- Future price: how much what the entered amount is worth today will cost: amount × (1 + inflation)years.
- Purchasing power: how much that same amount kept without any return will be worth in today’s money: amount ÷ (1 + inflation)years.
- Percentage loss of purchasing power and a year-by-year table.
What inflation should I use?
The calculator has no preloaded figures by country so it doesn’t show outdated numbers. Check the latest official figure or a multi-year average on the website of your country’s statistics institute or central bank, and try it with different scenarios. Inflation can vary a lot from one year to the next and between countries.
How it helps you in real life
- Adjust long-term goals (education, retirement, housing).
- Assess whether a pay raise is real or only offsets inflation.
- Decide whether it makes sense to leave money idle or look for options that at least protect it.
If you want to understand the concept in depth, read inflation and purchasing power: what it means for your savings.
Frequently asked questions
How is the effect of inflation calculated?
The future price is calculated as amount × (1 + annual inflation) raised to the number of years. Purchasing power is the amount divided by that same factor.
Where can I find my country’s official inflation?
At your country’s national statistics institute or central bank, for example INEC in Ecuador, INEGI in Mexico or DANE in Colombia.
Does inflation affect everyone equally?
No. The CPI reflects an average basket; your personal inflation depends on what you spend on.
What happens if inflation is negative?
That is deflation: prices go down. The calculator accepts negative values to simulate that scenario.
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