The simulator calculates the impact of inflation on an initial or final price. Calculate the loss of purchasing power due to inflation or deflation over a given period.
To simulate the impact of inflation, choose the calculation mode (future price or original price), enter the price, the annual inflation rate and the duration in years. The simulator will calculate the adjusted price, cumulative inflation and purchasing power change.
Inflation is the general and sustained increase in the prices of goods and services in an economy. It leads to a loss of purchasing power: with the same amount of money, you can buy fewer things over time. Our simulator allows you to precisely measure this impact.
Cumulative inflation over several years doesn't simply add up. It is calculated on a compound basis, similar to compound interest:
With a constant rate i over n years:
Cumulative inflation = [(1 + i)ⁿ - 1] × 100Future price = 1,000 × (1 + 0.025)¹⁰ = 1,000 × 1.2801 = €1,280.08
Cumulative inflation = (1.2801 - 1) × 100 = 28.01%
Purchasing power change = (1/1.2801 - 1) × 100 = -21.87%
When the rate is positive, it is called inflation: prices rise and purchasing power decreases. When the rate is negative, it is called deflation: prices fall and purchasing power increases. Deflation is a rarer phenomenon but can occur during economic crises.
| Annual Rate | Price in 5 years (base €100) | Price in 10 years (base €100) | Price in 20 years (base €100) |
|---|---|---|---|
| 1% | €105.10 | €110.46 | €122.02 |
| 2% | €110.41 | €121.90 | €148.59 |
| 3% | €115.93 | €134.39 | €180.61 |
| 5% | €127.63 | €162.89 | €265.33 |
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