Inflation vs Savings Calculator
See whether your savings keep up with rising prices and what their future balance is worth in today's money.
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Start with your figures.
Change the numbers below to see how they affect your estimate. Nothing needs to be saved.
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Try this calculatorAbout this calculator
See whether your savings keep up with rising prices and what their future balance is worth in today's money.
How this calculator works
Inflation versus savings interest
Savings can increase in pounds while buying less if prices rise faster. This calculator compares your money's estimated future nominal balance against its future purchasing power after inflation.
What the results mean
Future savings are the opening balance multiplied by (1 + annual savings rate) to the power of the years. The real value in today's money divides that amount by (1 + annual inflation rate) to the power of the years. Purchasing-power change is the real value minus the opening amount.
Worked example
£10,000 at 4% AER for five years grows to about £12,167. If inflation averages 3% annually, this has purchasing power of about £10,495 in today's money — a real gain of about £495. These are assumed rates, not a prediction.
Choosing inflation assumptions
The UK Office for National Statistics publishes CPI and CPIH. You can consult the latest official figures and enter a rate yourself. Past inflation is not a reliable forecast of future inflation. Your personal inflation experience will differ from the national average.
Limitations
Assumes fixed annual rates and annual compounding, with no new deposits, withdrawals, tax, fees or account restrictions. Annual inflation may vary, and actual returns may be lower. The future cost result shows what today's starting balance would need to rise to in pounds just to keep the same purchasing power.
Relevant UK data
Check the official figures behind the wider picture
Frequently asked questions
Can savings rise while purchasing power falls?
Yes. If inflation outpaces the after-tax savings return, your balance can grow in pounds but buy less.
Does this use live inflation?
No. You control the assumed annual inflation rate. Official ONS data is linked as context; the entered figure is a forecast assumption.
Does it include savings tax?
No. The interest rate is treated as a net effective rate for the illustration. Adjust the rate separately if you expect to pay tax.
Is CPI the same as my personal cost of living?
No. National inflation statistics track a representative basket, and your spending patterns can differ.
Guides for your next step
- Inflation vs savings: is your money really growing?
Learn the difference between nominal savings growth and inflation-adjusted purchasing power, with clear examples.