Inflation Calculator

Money only matters for what it can buy, and inflation slowly shrinks that. The key distinction is nominal (the number on the statement) versus real (what it actually purchases). Drag the simulator and watch a 'growing' balance lose ground when its return can't outrun inflation.

Free and interactive — no sign-up, nothing to install. Read the full lesson for the plain-language explanation.

This is an interactive simulator that needs JavaScript to run. Enable JavaScript to use it, or read the full lesson — the same idea is explained in plain language there.