Find what your money is still worth in years’ time, accounting for inflation — the real purchasing power and the value lost.
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Enter the amount, the annual inflation rate and the period. See what the money is still worth and the purchasing power lost.
Inflation erodes the purchasing power of money over time. The calculation uses a constant rate; real inflation varies year to year.
10,000 £ · 6% · 10 years → Real purchasing power 5,584 £Standard financial formulas (time value of money). Instant in-browser calculation, no account, no data sent. Figures are indicative — inflation varies year to year. Last updated: 11 July 2026 · Bank of England inflation.
⚖︎ Results are for informational purposes and do not constitute tax advice. For specific situations, consult a licensed accountant or the relevant tax authority.
The real purchasing power is found by dividing the amount by the cumulative rise in prices:
£10,000 at 3% inflation over 10 years is worth ≈ £7,441 in today’s purchasing power — a loss of ~26%.
It is the decline in the purchasing power of money over time. The same amount buys less as prices rise, even if its nominal value stays the same.
Divide the amount by (1 + inflation/100) to the power of the number of years. For example, £10,000 at 3% inflation over 10 years is worth £10,000 ÷ 1.03¹⁰ ≈ £7,441 in today’s purchasing power.
At an average inflation of 3%, today’s £10,000 will have the purchasing power of about £7,441 in current terms — a loss of nearly 26% of its value.
It means that, on average, prices rise by 3% a year. What costs £100 today will cost £103 next year, so the same money buys less. The Bank of England’s target is 2%.
By putting money into assets that grow at least at the inflation rate: savings accounts with good interest, bonds, shares, property or other investments with a positive real return.
Yes. If the account interest is below the inflation rate, the money loses purchasing power in real terms, even if the nominal amount grows slightly.
Nominal value is the amount of money, while real value is its purchasing power, adjusted for inflation. Only the real value shows what you can actually buy.
Because it earns no return while inflation constantly erodes its purchasing power. After years, the same amount buys significantly less.