Savings Inflation Calculator
See what your money will be worth in the future.
The default rate of 2.5% is based on the FCA's standard assumption — adjust the slider below to model different scenarios. Truflation offers a real-time alternative to CPI — an independent daily inflation index built on live market data: US Inflation · UK Inflation.
Your $10.0k will be worth
$4,767
↓ -52.33%in today's money by 2055
How this calculator works
This calculator uses a default annual inflation rate of 2.5%, the standard assumption used by the Financial Conduct Authority (FCA). You can adjust this rate using the inflation scale slider to model different scenarios.
In practice, inflation fluctuates from year to year — periods of rising prices may be followed by periods of deflation, when prices fall and purchasing power recovers. Over longer time horizons, however, inflation tends to stabilise around a long-term average.
The projected values shown represent your savings in today's money — that is, how much your future balance would actually buy at today's prices. The cost-of-living estimates for everyday items use the same selected inflation rate and are intended as illustrations, not forecasts.
This tool is for educational purposes only and does not constitute financial advice.
Frequently asked questions
Inflation is the rate at which the general price of goods and services rises over time. When prices go up, each pound or dollar you hold buys a little less than it did before — this is known as a loss of purchasing power.
The effect compounds over time: even a modest 2.5% annual rate can erode nearly half the real value of cash savings over 25 years. This is why understanding inflation is essential when planning long-term savings, pensions, or any financial goal where money sits idle for extended periods.
The calculator defaults to 2.5%, which reflects the standard assumption used by the FCA for pension projections. In practice, actual inflation rates vary significantly — developed economies have historically averaged around 2–3% annually, though rates can spike much higher during periods of economic disruption, as seen in 2022.
We recommend trying several values to see a range of outcomes. A lower rate (1–2%) represents an optimistic scenario, while a higher rate (4–6%) models persistent above-target inflation.
Each item's projected future price is calculated using the compound inflation formula: future price = base price × (1 + rate)^years. The base prices reflect current average costs for each item.
All items use the same inflation rate you select with the slider. In reality, different categories inflate at different rates — housing and energy often rise faster than food or electronics — but a single uniform rate keeps the illustration simple and consistent.
