Inflation Impact Calculator
See how inflation erodes your purchasing power over time.
Results
Purchasing Power
£13,960.10
Present Value
£10,000.00
Purchasing Power
£7,163.27
Value Lost
£3,960.10
Future Cost
£13,960.10
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 6.9%/yr - value silently shrinks
Invested @ 8%
Park in equity / index funds at 8% nominal
Original amount
£10,000.00
Original amount
£10,000.00
Future nominal value
£13,960.10
Future nominal value
£14,693.28
Real purchasing power
£7,163.27
Real purchasing power
£10,525.20
+£3,361.93 preserved
In today's money, you'd hold £10,525.20 of real value vs £7,163.27 as cash - 47% more purchasing power.
Savings Tip
Pay 10% extra each month
Pay just 10% extra (£7,880/mo) and save £3,890 in interest, becoming debt-free 58 months earlier.
* Based on 10% overpayment applied every month until payoff.
How It Calculates
At a CPI of 6.9%, the purchasing power of your £10,000.00 will erode by £3,960.10 over 60 months, settling at £7,163.27. What costs £10,000.00 today will require £13,960.10 then.
💡Total Interest on £10,000.00: £3,960.10
Purchasing Power Loss: £2,836.73
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.
£5,000 over 3 years
6.9% APRSource: Bank of England · Updated 2026-05-01