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Inflation Calculator

How much is your cash in the bank really worth?

By · Data reviewed: August 2026

$100,000 in the bank × 20 years = $44,632 lost in purchasing power

Enter an amount and see how much purchasing power it lost over the years

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Inflation Calculator
My $100,000 in the bank, 20 years from now…
Inflation quietly eats:
That's a $44,632 drop in your money's value!
= my money buys 45% less
3% annual inflation · 20 years
How much is YOUR cash melting? →
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How Your Money Erodes Over Time

* This calculator is for educational purposes only and does not constitute financial advice.

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Common Erosion Scenarios

$10K in savings — 10 years

Small savings eroded by 3% annual inflation

Real Value: $7,441
Loss: -$2,559

$50K for 20 years

Moderate cash left in a savings account

Real Value: $27,684
Loss: -$22,316

$100K for 15 years

Significant sum losing purchasing power

Real Value: $64,186
Loss: -$35,814

Inflation Erosion Examples

AmountInflationYearsReal ValueLost
$10,0003%10$7,441$2,559
$50,0003%20$27,684$22,316
$100,0003%15$64,186$35,814
$250,0003%30$102,889$147,111
$500,0005%20$188,440$311,560

How Much Is Inflation Eroding Your Savings?

Inflation is the silent thief of savings. When your money sits in a savings account earning near-zero interest, it loses purchasing power every year. With US inflation averaging 3-4% in recent years, every $100,000 in cash effectively loses $3,000-$4,000 in buying power annually. The Consumer Price Index (CPI) measures this erosion.

The goal isn't to scare you — it's to show why investing matters more than just saving. Smart investing in diversified index funds, Treasury Inflation-Protected Securities (TIPS), or real estate allows your money to grow at a rate that outpaces inflation and preserves its real value.

How to Use the Inflation Calculator

Enter the amount sitting in your bank account, the annual inflation rate (3% is a reasonable long-term US average), and the time period in years. The calculator will show the real value of your money — its actual purchasing power after inflation — and the total value lost to erosion over time.

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Frequently Asked Questions

Inflation is the general rise in prices, causing your money to buy fewer things over time. If inflation is 3%, what costs $100 today will cost $103 next year. The Consumer Price Index (CPI) measures inflation in the US.

Cash in a savings account earns near-zero to low interest (even high-yield savings offer 4-5% temporarily) while inflation erodes its value. In the long run, you need investments that consistently outpace inflation.

By investing in assets that grow faster than inflation — such as stocks, Treasury Inflation-Protected Securities (TIPS), I Bonds, real estate, or diversified index funds.

Nominal returns are the raw percentage gain (e.g., 10% stock return). Real returns subtract inflation (e.g., 10% - 3% inflation = 7% real return). Always think in real terms to understand your actual purchasing power growth.

Yes. TIPS (Treasury Inflation-Protected Securities) adjust with CPI, protecting your principal. I Bonds earn a fixed rate plus inflation adjustment and are capped at $10,000/year per person. Both are backed by the US government — among the safest inflation hedges available.

The long-term US inflation average is about 3% per year. But it spikes periodically — 2022 saw 9.1% CPI. Even at 3%, $100,000 loses nearly half its purchasing power in 20 years, which is why staying invested matters.

Historically, yes. The S&P 500 has returned ~10% annually (nominal) or ~7% after inflation. Over 30 years, $100,000 invested would grow to ~$760,000 in real terms, while cash would shrink to ~$41,000 in purchasing power at 3% inflation.

Created by Amiel Riss | SmartMoney77

📊 Data source: Standard financial models. Prices and data in this article are reviewed and updated semi-annually. Last update: August 2026.

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