UK
IRE
AU
CA
US
ZAInflation calculator
Our inflation calculator helps you understand how the purchasing power of money changes over time due to inflation.
Page written by Ian Hawkins. Last reviewed on May 20, 2025. Next review due April 1, 2026.
Our inflation calculator helps you understand how the purchasing power of money changes over time due to inflation.
Page written by Ian Hawkins. Last reviewed on May 20, 2025. Next review due April 1, 2026.
This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.
Inflation refers to the general increase in prices of goods and services over time, resulting in a decrease in the purchasing power of money. It’s essentially the decline in the real value of money, leading to higher prices for everyday items.
Inflation is typically calculated using the Consumer Price Index (CPI), which measures the average change in prices paid by consumers for a basket of goods and services over time. The formula for calculating inflation rate is:
Inflation Rate = [(Current CPI – Previous CPI) / Previous CPI] * 100%
Example: Suppose the CPI for January is 250 and the CPI for December is 260.
Using the formula:
Inflation Rate = [(260 – 250) / 250] * 100%
Inflation Rate = (10 / 250) * 100%
Inflation Rate = 0.04 * 100%
Inflation Rate = 4%
The average inflation rate over the past few decades has been around 3-4% annually. However, it can vary significantly from year to year due to economic factors and government policies.
Hyperinflation is an extreme form of inflation characterized by rapid and uncontrollable increases in the prices of goods and services. It often leads to the devaluation of a country's currency and can have severe economic consequences.
Investing in assets that tend to increase in value over time, such as real estate, stocks, and precious metals, can help protect against inflation. Additionally, consider investing in inflation-indexed securities and diversifying your investment portfolio to mitigate the impact of inflation.
Our offices:
Disclaimer: Swoop Finance Ltd (Swoop) helps Canadian firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans or other finance products ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Swoop can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness. Swoop may receive a commission or finder’s fee for effecting such introductions. If you feel you have a complaint, please read our complaints section highlighted above and also contained within our terms and conditions.
yet? Register here!