Result
Purchasing power after the period
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
Purchasing power after the period = amount today ÷ (1 + annual inflation) ^ number of years. This isn't "how much money is left" — the nominal amount doesn't change — it's how many of today's goods and services that same nominal amount will buy after the given period.
Cumulative inflation over the period = ((1 + annual inflation) ^ number of years − 1) × 100% — that's not the annual rate times the number of years: inflation compounds the same way deposit returns do, so 5% a year over 10 years isn't 50%, it's noticeably more.
This calculation mirrors compound interest: there, a sum grows over time; here, its purchasing power shrinks. When comparing an investment's return against inflation, it's the real return (net of inflation) that matters, not the nominal one — otherwise an investment can look like it's growing while actually losing purchasing power.