Inflation Impact Calculator
See how inflation erodes your purchasing power over time.
Results
Purchasing Power
$19,809.36
Present Value
$15,000.00
Purchasing Power
$11,358.27
Value Lost
$4,809.36
Future Cost
$19,809.36
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
+36%better
Held as cash
Inflation eats 7.2%/yr - value silently shrinks
Invested @ 8%
Park in equity / index funds at 8% nominal
Original amount
$15,000.00
Original amount
$15,000.00
Future nominal value
$19,809.36
Future nominal value
$20,407.33
Real purchasing power
$11,358.27
Real purchasing power
$15,452.80
+$4,094.53 preserved
In today's money, you'd hold $15,452.80 of real value vs $11,358.27 as cash - 36% more purchasing power.
Savings Tip
Pay 10% extra each month
Pay just 10% extra ($12,494/mo) and save $4,704 in interest, becoming debt-free 46 months earlier.
* Based on 10% overpayment applied every month until payoff.
How It Calculates
At a CPI of 7.2%, the purchasing power of your $15,000.00 will erode by $4,809.36 over 48 months, settling at $11,358.27. What costs $15,000.00 today will require $19,809.36 then.
💡Total Interest on $15,000.00: $4,809.36
Purchasing Power Loss: $3,641.73
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.
$10,000 over 2 years
7.5% APRSource: Bank of Canada · Updated 2026-04-01