Inflation Calculator
Enter an amount and see, in one table, how much its purchasing power would shrink over 20 years at inflation rates from 1% to 10% — every rate and every year at once, updating instantly as you type.
Calculator
Calculator
Purchasing power over 20 years, by inflation rate
| Year | 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | £9,900.99 | £9,803.92 | £9,708.74 | £9,615.38 | £9,523.81 | £9,433.96 | £9,345.79 | £9,259.26 | £9,174.31 | £9,090.91 |
| 2 | £9,802.96 | £9,611.69 | £9,425.96 | £9,245.56 | £9,070.29 | £8,899.96 | £8,734.39 | £8,573.39 | £8,416.80 | £8,264.46 |
| 3 | £9,705.90 | £9,423.22 | £9,151.42 | £8,889.96 | £8,638.38 | £8,396.19 | £8,162.98 | £7,938.32 | £7,721.83 | £7,513.15 |
| 4 | £9,609.80 | £9,238.45 | £8,884.87 | £8,548.04 | £8,227.02 | £7,920.94 | £7,628.95 | £7,350.30 | £7,084.25 | £6,830.13 |
| 5 | £9,514.66 | £9,057.31 | £8,626.09 | £8,219.27 | £7,835.26 | £7,472.58 | £7,129.86 | £6,805.83 | £6,499.31 | £6,209.21 |
| 6 | £9,420.45 | £8,879.71 | £8,374.84 | £7,903.15 | £7,462.15 | £7,049.61 | £6,663.42 | £6,301.70 | £5,962.67 | £5,644.74 |
| 7 | £9,327.18 | £8,705.60 | £8,130.92 | £7,599.18 | £7,106.81 | £6,650.57 | £6,227.50 | £5,834.90 | £5,470.34 | £5,131.58 |
| 8 | £9,234.83 | £8,534.90 | £7,894.09 | £7,306.90 | £6,768.39 | £6,274.12 | £5,820.09 | £5,402.69 | £5,018.66 | £4,665.07 |
| 9 | £9,143.40 | £8,367.55 | £7,664.17 | £7,025.87 | £6,446.09 | £5,918.98 | £5,439.34 | £5,002.49 | £4,604.28 | £4,240.98 |
| 10 | £9,052.87 | £8,203.48 | £7,440.94 | £6,755.64 | £6,139.13 | £5,583.95 | £5,083.49 | £4,631.93 | £4,224.11 | £3,855.43 |
| 11 | £8,963.24 | £8,042.63 | £7,224.21 | £6,495.81 | £5,846.79 | £5,267.88 | £4,750.93 | £4,288.83 | £3,875.33 | £3,504.94 |
| 12 | £8,874.49 | £7,884.93 | £7,013.80 | £6,245.97 | £5,568.37 | £4,969.69 | £4,440.12 | £3,971.14 | £3,555.35 | £3,186.31 |
| 13 | £8,786.63 | £7,730.33 | £6,809.51 | £6,005.74 | £5,303.21 | £4,688.39 | £4,149.64 | £3,676.98 | £3,261.79 | £2,896.64 |
| 14 | £8,699.63 | £7,578.75 | £6,611.18 | £5,774.75 | £5,050.68 | £4,423.01 | £3,878.17 | £3,404.61 | £2,992.46 | £2,633.31 |
| 15 | £8,613.49 | £7,430.15 | £6,418.62 | £5,552.65 | £4,810.17 | £4,172.65 | £3,624.46 | £3,152.42 | £2,745.38 | £2,393.92 |
| 16 | £8,528.21 | £7,284.46 | £6,231.67 | £5,339.08 | £4,581.12 | £3,936.46 | £3,387.35 | £2,918.90 | £2,518.70 | £2,176.29 |
| 17 | £8,443.77 | £7,141.63 | £6,050.16 | £5,133.73 | £4,362.97 | £3,713.64 | £3,165.74 | £2,702.69 | £2,310.73 | £1,978.45 |
| 18 | £8,360.17 | £7,001.59 | £5,873.95 | £4,936.28 | £4,155.21 | £3,503.44 | £2,958.64 | £2,502.49 | £2,119.94 | £1,798.59 |
| 19 | £8,277.40 | £6,864.31 | £5,702.86 | £4,746.42 | £3,957.34 | £3,305.13 | £2,765.08 | £2,317.12 | £1,944.90 | £1,635.08 |
| 20 | £8,195.44 | £6,729.71 | £5,536.76 | £4,563.87 | £3,768.89 | £3,118.05 | £2,584.19 | £2,145.48 | £1,784.31 | £1,486.44 |
How it's worked out
Each cell uses the standard formula for the value of money in today's terms, applied once a year:
Value in today's terms after n years = Amount ÷ (1 + annual inflation rate ÷ 100)ⁿ
The table repeats this for every whole rate from 1% to 10% and every year from 1 to 20, so you can compare how much the rate itself changes the outcome over a long horizon.
This shows what the same amount would be worth after n years of inflation — how much of today's goods and services it could still buy — not an amount that actually disappears from a bank account. Money sitting in an account keeps the same number on the statement; inflation erodes what that number can buy, which is what this table measures.
Worked example
Suppose you have £10,000 today. At a steady 5% inflation rate, it would be worth about £7,835.26 in today's terms after 5 years, £6,139.13 after 10 years, and £3,768.89 after 20 years — even though the number in an account earning no interest would still read £10,000.
The rate matters a lot: the same £10,000 over the same 20 years would still be worth about £8,195.44 at just 1% inflation, but only about £1,486.44 at 10% inflation — more than five times less purchasing power, purely from the difference in the inflation rate compounding year after year.
Frequently asked questions
How is the value in each cell worked out?
We divide your amount by (1 + inflation rate ÷ 100), raised to the power of the number of years, once for each rate (1% to 10%) and each year (1 to 20). This shows how many of today's pounds it would take to buy what your amount buys today, after that many years of that inflation rate.
Does this mean my money actually shrinks?
No — the number in a bank account doesn't fall on its own because of inflation. What shrinks is what that number can buy: if prices rise faster than your money grows, the same amount buys less over time. This table shows that loss of purchasing power, not a falling balance.
Why does a small difference in the inflation rate make such a big difference after 20 years?
Inflation compounds in the same way investment growth does: each year's price rise is worked out on an already-higher price level than the year before, so small rate differences multiply themselves over time. Over a few years the gap is small; over 20 years it becomes large.
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For information only. This is not financial or tax advice.