A self-possessed adult woman in a clean, high-end editorial setting for Inflation.

03 / 25 · Inflation

Her money keeps its power. Can yours afford to stand still?

A cash balance can remain unchanged while the goods and time it can buy become more expensive.

The lesson

€100,000 can still read €100,000. It may buy only €47,674 worth.

At a constant 2.5% annual inflation rate, €100,000 has the purchasing power of about €78,120 after ten years and €47,674 after thirty, measured in today’s euros.

The account can still display €100,000. But that does not mean it can still buy €100,000 worth of goods and services.

This does not make cash useless. It makes the purpose and time horizon of cash worth naming clearly.

€78,120Buying power after 10 years

€61,027Buying power after 20 years

€47,674Buying power after 30 years

Test the erosion

Change inflation. Measure what the money still buys.

This calculator converts a future nominal amount into today's purchasing power.

See the curve

€52,326 disappears
without leaving the account.

A constant nominal amount buys less each year when prices rise.

€100,000 buying power

€52,326 disappears without leaving the account.
YEARS	€100,000 buying power
0	100000
10	78120
20	61027
30	47674

Starting amount

Annual inflation

Years held

Buying power in today's euros

Purchasing power lost

Continue with any AI assistant

Make purchasing power visible.

Show how €100,000 of buying power changes over 30 years if inflation is a constant 2.5% annually. Calculate the equivalent purchasing power after 10, 20 and 30 years in today's euros. Explain nominal versus real value, state every assumption, and repeat at 1% and 4% inflation. Give me three practice questions. Keep it educational, not personalized financial advice.

Assumptions

Constant 2.5% annual inflation.
Values are expressed in today's euros.
No interest, fees, tax, deposits or withdrawals.
Inflation varies in reality; this is an arithmetic illustration.