Amount today

€

Assumed inflation rate per year

%

The ECB’s price stability target is 2 per cent over the medium term.

Period

years

Interest or return per year (optional)

%

For comparison: what interest changes about the loss of purchasing power.

Purchasing power at the end, in today’s euros: …
Loss of purchasing power: …
Needed for the same purchasing power: …
Amount with interest: …
Of which real, in today’s euros: …
Real return per year: …

Purchasing power without interest Purchasing power with interest

Calculation with a constant inflation rate and interest. Taxes on interest and returns are not taken into account. Formula: purchasing power = amount divided by (1 + inflation rate) to the power of the years.

Understanding purchasing power

Inflation means that the general price level rises. The same amount of money then buys fewer goods and services. The calculator shows how much an amount today will still be worth after a number of years, measured in today’s prices.

Real return

Earning interest or a return offsets the loss of purchasing power in full or in part. What matters is the real return: the return after inflation. It is calculated exactly as (1 + interest) divided by (1 + inflation) minus 1.

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