Inflation reduces the purchasing power of money over time. If inflation is 5% per year, something that costs 1,000 rupees today will cost 1,050 next year, 1,628 in 10 years, and 2,653 in 20 years. Use this calculator to see how inflation affects your money and savings.
📂 Finance
📉 Inflation Calculator
See how inflation erodes the value of money over time. Calculate future prices, real value of savings, and how much more you need to earn to keep up with inflation.
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✨ Your Result
🦉Owl's Explanation
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✅ Trusted Tool
The 365tool.net Inflation Calculator uses the standard compound inflation formula used by economists and financial advisors worldwide. Enter your country's actual inflation rate for accurate results. Free, no sign-up needed.
🤔 How Does This Work?
The Inflation Calculator uses the compound growth formula:
Future Value = Present Value x (1 + Inflation Rate)^Years
A 5% inflation rate means prices multiply by 1.05 each year
Over 10 years: 1.05^10 = 1.629 — prices are 62.9% higher
The calculator also shows purchasing power loss — how much less your money buys
❓ Frequently Asked Questions
What is inflation in simple terms?▼
Inflation means prices go up over time. If inflation is 5%, a bag of rice that costs 500 rupees today will cost 525 next year. Your money buys less over time. This is why saving in a low-interest account can actually lose you money in real terms.
What is Sri Lanka's inflation rate?▼
Sri Lanka has experienced varying inflation. In 2022-2023 during the economic crisis, inflation reached over 60%. In more normal times, Sri Lanka's annual inflation averages around 5-8%. Our calculator lets you enter any rate.
How does inflation affect savings?▼
If your savings account pays 5% interest but inflation is 7%, you are effectively LOSING 2% of purchasing power each year. Real interest rate = Nominal rate - Inflation rate. You need to earn above inflation just to maintain your wealth.
What is the Rule of 70?▼
The Rule of 70 estimates how long it takes for prices to double at a given inflation rate. Divide 70 by the inflation rate. At 5% inflation, prices double in 70/5 = 14 years. At 7%, prices double every 10 years!
How can I protect money from inflation?▼
Invest in assets that grow faster than inflation: stocks, real estate, gold, or inflation-protected bonds. Simply keeping money in cash loses value. Even a basic savings account should ideally earn above the inflation rate.
Inflation means prices go up over time. If inflation is 5%, a bag of rice that costs 500 rupees today will cost 525 next year. Your money buys less over time. This is why saving in a low-interest account can actually lose you money in real terms.
What is Sri Lanka's inflation rate?▼
Sri Lanka has experienced varying inflation. In 2022-2023 during the economic crisis, inflation reached over 60%. In more normal times, Sri Lanka's annual inflation averages around 5-8%. Our calculator lets you enter any rate.
How does inflation affect savings?▼
If your savings account pays 5% interest but inflation is 7%, you are effectively LOSING 2% of purchasing power each year. Real interest rate = Nominal rate - Inflation rate. You need to earn above inflation just to maintain your wealth.
What is the Rule of 70?▼
The Rule of 70 estimates how long it takes for prices to double at a given inflation rate. Divide 70 by the inflation rate. At 5% inflation, prices double in 70/5 = 14 years. At 7%, prices double every 10 years!
How can I protect money from inflation?▼
Invest in assets that grow faster than inflation: stocks, real estate, gold, or inflation-protected bonds. Simply keeping money in cash loses value. Even a basic savings account should ideally earn above the inflation rate.