Inflation impact
What your money will really buy in 10, 20 or 30 years — and the return cash needs just to stand still.
Inflation compounds too.
Inflation compounds too. Each year prices rise by the assumed rate, so the same pounds buy a little less; over decades the effect is large. The calculator divides your money by the cumulative price rise to show it in today's purchasing power.
The second line adds whatever your money earns. If the return matches inflation, the line is flat — you have stood still. Cash earning less than inflation is quietly shrinking.
Formula
real value = £ × (1 + r)ⁿ ÷ (1 + i)ⁿ
r return earned, i inflation, n years. Expressed in today's pounds.
- 01Constant inflation and return; both vary in reality.
- 02No tax on interest or returns.
- 03Uses a single inflation rate — your personal basket may differ from the headline CPI.
Holding everything else at your inputs
Each row changes one variable and shows the result. It illustrates which assumptions the answer is most sensitive to — it does not suggest which to choose.
| Variable | Changed to | Real value | vs your result |
|---|
Reminder: this tool is general education, not a forecast of inflation or a recommendation to hold or move any money. For decisions, consult an FCA-authorised adviser — our toolkit shows how to find one.