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UK Inflation Calculator — What Your Money Will Be Worth

Inflation Calculator

See what your money will really be worth in years to come — and how much you'd need to keep the same spending power as prices rise. Free PDF report.

£
% / yr

The Bank of England targets 2%. UK CPI has recently run higher.

years

Get your inflation report — free PDF

  • Purchasing power year by year
  • How much you'd need to keep up
  • The savings rate needed just to stand still
  • Ways to protect your money from inflation

This calculator is a guide only and not financial advice. It assumes a constant annual inflation rate; actual UK inflation (CPI) varies year to year. Figures are illustrative and rounded.

How the inflation calculator works

Inflation quietly erodes the value of your money: as prices rise, the same pounds buy less. This calculator shows what a sum of money today will really be worth in years to come, and how much you would need in future to keep the same spending power.

Enter an amount, an average inflation rate and a number of years. You will see the eroded “real” value, how much has been lost to inflation, and the figure you would need to match today’s purchasing power. The Bank of England targets 2% inflation, but UK CPI has often run higher, so it is worth testing a few rates. The free PDF shows the decline over 5, 10, 20 and 30 years.

The lesson is that cash left idle loses value in real terms. To fight back, keep short-term money in an account paying more than inflation — see the best regular saver rates — and consider investing longer-term money in a Stocks & Shares ISA, which has historically outpaced inflation over time.

Frequently asked questions

How does inflation reduce the value of money?
Inflation means prices rise over time, so the same amount of money buys less. At 3% inflation, £100 today has the purchasing power of about £74 in ten years.
How do I calculate the future value of money with inflation?
To find the real (purchasing-power) value, divide the amount by (1 + the inflation rate) raised to the number of years. To find how much you would need to keep up, multiply by the same factor.
How can I protect my savings from inflation?
Keep cash you need short-term in an account paying more than inflation, and consider investing money you will not need for five or more years, as investments have historically outpaced inflation over the long run.
What is a realistic inflation rate to use?
The Bank of England targets 2% a year, which is a reasonable long-run assumption. However UK inflation has spiked well above that in some recent years, so modelling 3–4% gives a more cautious view of how your money could lose value.
Does inflation affect debt too?
Yes, but in the borrower’s favour for fixed-rate debt: inflation erodes the real value of money you owe, so a fixed mortgage or loan effectively becomes cheaper in real terms over time, even though the cash amount stays the same.
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