Inflation vs. Investment Calculator

See how investing can help your money outpace inflation.

Parameters

Initial Amount

Expected Annual Investment Return (%)

Expected Annual Inflation Rate (%)

Time Period (Years)

Future Cost of Goods

(1,00,000 adjusted for inflation)

Future Value of Investment

(1,00,000 invested at 10.00%)

Your Net Gain in Purchasing Power

This is the real growth of your wealth after accounting for inflation.

About the Calculator

Inflation is the rate at which prices rise, causing the purchasing power of your money to fall. This calculator demonstrates this "silent thief" in action, but more importantly, it shows you the solution: **investing**.

An item that costs 1,00,000 today will cost 0 in 10 years, assuming 6.00% inflation. If you just save your 1,00,000 in cash, you won't be able to afford that item in the future.

If you invest that same 1,00,000 at an expected return of 10.00%, it could grow to 0 in 10 years. After buying that same item for its future price of 0, you would still have 0 left over. This is how you build real wealth.