Savings purchasing power calculator
See what your future savings balance could buy in today’s dollars after inflation.
Your estimate
- Ending balance before inflation
- $12,166.53
- Annual yield after inflation
- 1.46%
Assumes constant APY and inflation, with no new deposits, withdrawals, taxes, or fees.
Why the balance and its buying power differ
Worked example
At 4% APY and 2.5% annual inflation for five years, $10,000 grows to $12,166.53. That has the buying power of about $10,753.44 today.
Grow the balance at its APY, then divide by the factor by which prices rise. To find the annual yield after inflation, divide one plus the APY by one plus the inflation rate and subtract one.
Sources
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How to read a balance in today’s dollars
Separate the future balance from what it could buy
The ending balance before inflation is the dollar amount you could see on your statement. The balance in today’s dollars estimates what that amount could buy at today’s prices. If your APY and inflation are both 4%, the account balance rises while its estimated purchasing power stays level before taxes and fees.
Use inflation as an assumption you can vary
The Consumer Price Index tracks an average basket of goods and services. Prices for things you personally buy can move differently. For a goal such as a move or a car purchase, compare a few inflation assumptions and see how much the estimate changes. A historical CPI figure describes past prices, while this calculator projects forward from the rate you enter.