Inflation impact calculator
See how inflation erodes the buying power of a sum of money over time — and how much more you'd need in the future to match what it buys today.
Real value of £10,000 in 10 years
£8,203
In 10 years, £10,000 will only buy what £8,203 buys today — 18% less buying power.
Where the buying power of £10,000 goes
Buying power retained
£8,203
Lost to inflation
£1,797
To have the same buying power as £10,000 today, you'd need £12,190 in 10 years at this rate.
Real value over time
Move across the chart to inspect any point.
Assumes a constant annual inflation rate, compounding yearly — real inflation varies year to year and this is an illustrative projection, not a forecast. Not financial advice.
Why inflation matters for savings
Inflation is the rate at which prices rise over time, which means a fixed sum of money buys a little less each year. Money sitting in cash — whether in a current account or a savings account earning less than the inflation rate — is quietly losing buying power even though the number on the statement doesn't go down.
This is why it's useful to compare a savings account's interest rate against inflation, not just at the number in isolation: if inflation is 3% and an account pays 2%, you're losing buying power even while your balance is technically growing. See the Compound Interest calculator to check whether a given rate keeps pace.