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Inflation calculator

Standing still is still losing ground.

A balance that never grows can still shrink. See what today’s savings will really buy, once inflation has taken its share.

Your money

£

What you’ve got sitting in cash today.

Where it sits
Inflation
10 years

In 10 years, that would actually buy

£10,000 at 0% with 2.6% inflation buys about £7,736 of today’s stuff in 10 years.

In 10 years, £10,000 today would actually buy £7,736 of today’s goods and services. The account would show £10,000, but inflation quietly takes £2,264 of that in real terms.
Real value

£7,736

Lost to inflation

£2,264

The balance is the number your account shows you. Real value is what it can actually buy - that’s the one worth watching.

What inflation quietly takes

That’s the spending power £10,000 loses over 10 years at 0%, even though the account itself would show £10,000.

“The balance on your screen never falls. Its buying power does, every single year you leave it alone.”

Nominal balance versus real purchasing power over 10 yearsThe account shows £10,000 after 10 years, but in today's money that is worth about £7,736 - a real-terms gap of £2,264.Today10 yrs
Nominal balance - £10,000Real purchasing power - £7,736
Projected balance by year
YearNominal balanceReal purchasing power (today's money)
0£10,000£10,000
1£10,000£9,747
2£10,000£9,500
3£10,000£9,259
4£10,000£9,024
5£10,000£8,796
6£10,000£8,573
7£10,000£8,355
8£10,000£8,144
9£10,000£7,937
10£10,000£7,736
Nominal balance

£10,000

Real value

£7,736

The gap

£2,264

How this works

Both the rate and inflation are compounded annually, once a year rather than monthly - close enough over a multi-year horizon that the extra assumption would not change the story. Inflation is held constant at 2.6% for the whole 10-year stretch; real inflation moves year to year and nobody can call it that far out. The current-CPI preset uses the ONS’s headline 12-month rate, 2.6% (12 months to June 2026, released 22 July 2026) - a snapshot, not a prediction. This is not financial advice. These are ideas to make you a little bit richer.

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