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Inflation Calculator
See how inflation erodes purchasing power over time. Calculate the real vs nominal value of money and understand what your savings will actually buy in the future.
Inflation Parameters
Bank of Canada target: 2%. Recent 5-yr avg: ~3.5%
Results update live
Future Cost of $1,000
$1,280
in 10 years at 2.5%/yr
Purchasing Power of $1,000
$781
−21.9% in real terms
Year-by-Year Impact
| Year | Future Cost | Purchasing Power | Cum. Inflation |
|---|---|---|---|
| 1 | $1,025 | $976 | +2.5% |
| 2 | $1,051 | $952 | +5.1% |
| 3 | $1,077 | $929 | +7.7% |
| 4 | $1,104 | $906 | +10.4% |
| 5 | $1,131 | $884 | +13.1% |
| 6 | $1,160 | $862 | +16% |
| 7 | $1,189 | $841 | +18.9% |
| 8 | $1,218 | $821 | +21.8% |
| 9 | $1,249 | $801 | +24.9% |
| 10 | $1,280 | $781 | +28% |
💡 At 2.5% inflation, money loses half its purchasing power every 28.8 years (Rule of 72). Keeping savings in a HYSA or invested helps preserve buying power.