UK Inflation Calculator
£100 today won't buy £100 worth of goods in a decade. This calculator shows the future cost of any amount at the CPI inflation rate — and what your savings lose in real terms.
How to use this calculator
- Enter amount today.
- Enter years into the future.
- Enter expected inflation rate.
- Your results appear instantly below and update as you change the numbers.
How this calculator works
Inflation compounds exactly like interest, but against you: a price that rises 3% a year multiplies by 1.03 each year. After 10 years an item costing £100 today costs about £134; after 20 years about £181. Your savings need to earn at least the inflation rate just to preserve purchasing power — anything below it is a real loss. The Bank of England targets 2% CPI, but actual inflation has averaged higher in recent years, so testing 2%, 3% and 4% gives a realistic range. Worked example: at 3%, £1,000 today needs £1,344 in 10 years to buy the same things — and a savings account paying 2% is actually losing you about 1% a year in real terms.
Frequently asked questions
What is the UK inflation rate right now?
CPI has hovered around 3% in 2026 after the post-pandemic spikes, with the Bank of England targeting 2%. Individual prices differ — energy, housing and food have outpaced the headline figure in recent years, so use your own spending mix if you want precision.
How does inflation affect my savings?
Real return = nominal return − inflation. Cash paying 4% during 3% inflation earns 1% in real terms; a pension growing 6% earns 3% real. The calculator isolates the inflation side — pair it with a compound interest calculator to compare real outcomes.
Why does the state pension rise with inflation?
The triple lock raises the state pension each April by the highest of CPI inflation, average earnings growth, or 2.5%. That's a real-terms guarantee — the same protection every saver should aim for when choosing where their money sits.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect the current tax year and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: GOV.UK income tax rates · National Insurance · Stamp Duty Land Tax.