How Much Inflation Is Costing You
Calculate the Impact of Inflation on Your Savings
Input your savings balance, interest rate, and calculate to reveal:
- Projected interest earnings
- Value lost to inflation
- Cumulative impact of inflation over 5 years
Benefits of Using This Calculator:
- Determine if higher-interest savings accounts are beneficial, especially during high inflation.
- Estimate the difference in savings growth between different account rates.
Example:
With £20,000 in an average easy-access account at 2.86%, you would lose £27.18 in "real terms" (or purchasing power) due to inflation after a year. Despite earning £572 in interest, your savings would be worth only £19,972.82 when adjusted for inflation.
By switching to the highest-paying easy-access account (4.75% from Monument Bank), you would gain £339.81 from inflation, based on actual interest of £950.