Inflation Impact on Savings Calculator
Inflation Impact on Savings Calculator
"See how inflation reduces your savings' real value and learn how to protect your purchasing power."
Inflation silently eats away at your savings over time. Even if you're earning interest, rising prices can make your money worth less in the future. Use this calculator to estimate the real value of your savings after accounting for inflation, and explore strategies to keep your wealth growing faster than prices.
Inflation Impact Calculator
Enter your savings details to see how inflation affects your real wealth over time
Educational Guide
What Is Inflation?
Inflation is the rate at which the general level of prices for goods and services rises, causing purchasing power to fall over time. When inflation is 3%, your money buys 3% less than it did a year ago.
How Inflation Impacts Savings
Different accounts are affected differently:
- • Regular savings: Most vulnerable
- • CDs: Fixed rates may not keep up
- • Money markets: Better but still risky
- • Stocks: Historically outperform inflation
Protection Strategies
- •High-yield savings accounts
- •TIPS (Treasury Inflation-Protected Securities)
- •Diversified stock portfolios
- •Real estate investments
- •Commodities and precious metals
Example Calculation
If you save $10,000 for 10 years at 2% interest while inflation is 3%, the real value of your savings will be about $8,530 and you will have a loss of 15% purchasing power.
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