Finance & tax

Inflation calculator

Calculate how inflation erodes purchasing power or project future prices. Enter an amount, rate and number of years for instant results.

  • Free, no sign-up
  • No data stored
  • Reviewed 2026-01-15

Your details

£
%
Direction

Results

Purchasing power £675.56 £1,000.00 today will buy £1,000.00 worth of goods after 10 years at this rate
Same basket costs
£1,480.24

In 10 years

Value lost
£324.44
Cumulative inflation
48.0 %
Inflation chart
  • Real value
  • Nominal cost
03006009001,2001,500Real valueNominal cost0246810

Projection

Years Nominal cost Real value Cumulative inflation
1 £1,040.00 £961.54 4.0 %
2 £1,081.60 £924.56 8.2 %
3 £1,124.86 £889.00 12.5 %
5 £1,216.65 £821.93 21.7 %
10 £1,480.24 £675.56 48.0 %
15 £1,800.94 £555.26 80.1 %
20 £2,191.12 £456.39 119.1 %
25 £2,665.84 £375.12 166.6 %
30 £3,243.40 £308.32 224.3 %

About the Inflation Calculator

See how a sum of money loses purchasing power over time at a given inflation rate, or work backwards to find out what today's amount was worth in past terms.

The tool uses simple annual compounding: Future Price = Present × (1 + rate)years. Enter a historical or projected inflation rate and a time period to see the impact.

How to use the Inflation Calculator

  1. Enter an amount in today's money.
  2. Set the annual inflation rate.
  3. Enter the number of years (past or future).
  4. Choose direction: forward (future cost) or backward (past equivalent).
  5. View the adjusted amount and percentage change.

Frequently asked questions

What inflation rate should I use?

The Bank of England targets 2% CPI. Historical UK average since 2000 is around 2.5–3%. Use current ONS data for precision.

Does this use real CPI data?

No. It applies a constant annual rate you supply. For historical calculations with actual yearly CPI, consult the ONS CPI index directly.

Can I use this for salary negotiation?

Yes. Calculate what your current salary would need to be to maintain purchasing power after several years of inflation.

Sources

Figures are estimates for guidance only. Always confirm with the official source or a qualified professional before acting on them.