Enter today's price — a market price or an amount of cash you hold.
Enter the yearly inflation rate. Use your own assumption.
Enter how many years ahead to look. The result shows the future price, purchasing power and erosion.
Formulas
What
Formula
Example
Future price
today’s price × (1 + rate)^years
100,000, 9.5%, 5 years ≈ 157,424
Purchasing power
today’s price ÷ (1 + rate)^years
100,000 ÷ (1.095)^5 ≈ 63,523
Value eroded
1 − purchasing power ÷ today’s price
≈ 36.5% over 5 years
Example — default calculation
100,000 taka at 9.5% for 5 years: future price = 100,000 × (1.095)^5 = ≈ 157,424 taka. A basket costing 100,000 today needs 157,424 in 5 years. The 100,000 keeps purchasing power of only ≈ 63,523 taka — erosion of ≈ 36.5%.
Recent inflation in Bangladesh (example only)
BBS figures put overall inflation at around 9–10% towards FY2025-26 — given here only as an example. Enter your own rate in the calculator: your household basket of rice, transport and rent may inflate at 7% or 12%.
Things to watch
Rates don’t stay fixed: one rate over 5–20 years is an assumption. Try a lower and a higher rate to see the range.
Incomes rise too: salaries and business income usually grow with inflation — don’t panic looking only at prices.
Interest vs inflation: real gain on savings = interest rate − inflation. If negative, cash in the bank is losing purchasing power.
Frequently asked questions
What is the inflation formula?
Future price = today's price × (1 + rate)^years. For example, 100,000 taka at 9.5% for 5 years is 100,000 × (1.095)^5 ≈ 157,424 taka.
What does purchasing power mean?
What today's money will still buy later: today's price ÷ (1 + rate)^years. 100,000 taka at 9.5% buys ≈ 63,523 taka worth of goods after 5 years — about 36,477 taka of value eroded.
Which rate should I use?
BBS figures put overall inflation around 9–10% in FY2025-26 — that is only an example. Enter a rate matching the prices you actually see.
Is inflation the same as a price rising?
Inflation is the average rise across everything (measured by the consumer price index). A single item can rise faster or slower.
How does it affect savings?
If your interest rate is below inflation, your money loses real value. At 9.5% inflation, an 8% deposit shrinks in purchasing power.