Work out inflation impact on savings instantly with clear inputs, formula shown and shareable results.
When the interest rate is below inflation the balance rises while its purchasing power falls. The real rate makes that visible: a 4% deposit against 6% inflation loses nearly 2% of value every year.
Real value of savings
Real = amount × (1+r)^t / (1+inflation)^t; real rate = (1+r)/(1+i) - 1
Figures are estimates for planning only. Prices, returns, inflation and personal circumstances all change. This is not financial or tax advice — speak to a qualified adviser before making decisions.
In real terms usually yes over long periods, which is why cash is for liquidity rather than growth.
Enough for emergencies and known near-term spending. Beyond that, holding cash has a real cost.