Inflation Impact Calculator
See how inflation erodes your purchasing power over time.
Results
Purchasing Power
$30,073.13
Present Value
$20,000.00
Purchasing Power
$13,300.91
Value Lost
$10,073.13
Future Cost
$30,073.13
Estimates only - not financial advice. Verify with a qualified professional before making decisions.
What you could do instead
Two ways to play this - side by side
+47%better
Held as cash
Inflation eats 8.5%/yr - value silently shrinks
Invested @ 8%
Park in equity / index funds at 8% nominal
Original amount
$20,000.00
Original amount
$20,000.00
Future nominal value
$30,073.13
Future nominal value
$29,386.56
Real purchasing power
$13,300.91
Real purchasing power
$19,543.40
+$6,242.49 preserved
In today's money, you'd hold $19,543.40 of real value vs $13,300.91 as cash - 47% more purchasing power.
Savings Tip
Pay 10% extra each month
Pay just 10% extra ($14,631/mo) and save $9,892 in interest, becoming debt-free 58 months earlier.
* Based on 10% overpayment applied every month until payoff.
How It Calculates
$20,000.00 today feels like $13,300.91 in 60 months.
💡Total Interest on $20,000.00: $10,073.13
Purchasing Power Loss: $6,699.09
Tips to Save More
- Diversifying into assets that outpace CPI is essential to preserve purchasing power.
- Consider the 'Real Rate of Return' (Nominal Rate - Inflation) for all long-term holdings.
Example Scenarios
Pre-calculated scenarios based on current market data.
$15,000 over 3 years
8.5% APRSource: Reserve Bank of Australia · Updated 2026-04-01
$30,000 over 5 years
7.9% APRSource: Reserve Bank of Australia · Updated 2026-04-01