Content reviewed: 24 September 2026

Modelling the effect of an assumed inflation rate

This calculator shows how a current amount would need to grow to have the same nominal value after repeated annual inflation at the rate you enter. It is a scenario tool, not a forecast.

Formula

Future equivalent = Current amount × (1 + inflation rate)^years

Example

At a constant 5% annual inflation assumption, an item costing 1,000 today would have a modelled nominal cost of about 1,629 after 10 years.

Why actual inflation will differ

Inflation changes over time and different households buy different mixes of goods and services. An official consumer-price index is an average measure for a defined basket; your personal cost changes can be higher or lower.

Planning use

Try several rates instead of relying on one number. A lower, middle and higher inflation scenario can show how sensitive a long-term savings target is to changing purchasing power.

See Inflation and Purchasing Power for a fuller explanation.