How to Use the Inflation Calculator?
This website offers various calculators to calculate the effect of inflation. Here you will learn step by step how to use each calculator and what the results mean.
1. Purchasing Power Calculator
The purchasing power calculator shows what an amount from the past is worth now, or what a current amount was worth in the past.
Step 1: Choose your country
Select the country for which you want to make the calculation. Each country has its own inflation rate, so choose the correct country for an accurate calculation.
Step 2: Enter the amount
Enter the amount you want to convert. This could be your salary, the price of a house, or another amount you find interesting.
Step 3: Select start year
Choose the year from which you want to start. This is the year in which the amount was or is current.
Step 4: Select end year
Choose which year you want to convert to. The calculator then calculates what the amount is worth in that year, taking into account all inflation between both years.
Understanding the result
- Indexed amount: What the amount is worth in the end year
- Total inflation: The percentage by which prices have risen
- Purchasing power difference: How much more or less you can buy
2. Salary Calculator
With the salary calculator you can calculate whether your wage increases were sufficient to maintain your purchasing power.
Step 1: Enter your starting salary
Enter your salary from the year you want to start the analysis with.
Step 2: Add wage increases
For each year you received a wage increase, add a line with:
- The year of the increase
- The percentage or amount of the increase
Step 3: View the analysis
The calculator shows for each year:
- Your nominal salary (the amount you received)
- Your real salary (adjusted for inflation)
- The inflation in that year
- Whether your purchasing power increased or decreased
3. Cumulative Inflation Calculator
This calculator helps you see the total accumulated inflation over a period, based on historical inflation data.
Step 1: Enter base amount
Enter the amount you want to track (default is 100).
Step 2: Choose time period
Select the start and end years for the calculation.
Step 3: View cumulative effect
The calculator shows the total cumulative inflation percentage and the average annual inflation over the selected period.
Interpreting the result
The result shows how much prices have risen in total over the selected period. This helps you understand the compound effect of inflation over time.
Tips for Accurate Use
Use the right period
- For salary comparisons: use the period you've been with your employer
- For historical prices: use from year of purchase to now
- For future planning: be conservative in your inflation expectations
Watch for rounded figures
- The calculators use monthly inflation data for precision
- Small deviations may occur with manual calculations
- Different countries may use different CPI methodologies
Understand the limitations
- Inflation is an average - your experience may differ
- Future projections are estimates, not guarantees
- Taxes and contributions are not included in the calculation
Frequently Asked Questions about the Calculator
Why do my calculations differ from other websites?
Different sources use different data (national statistics vs OECD) and calculation methods. Our calculators use official statistical data for each country from authoritative sources.
Can I use the calculator for other currencies?
Yes, the calculator works with percentages. It doesn't matter whether you enter amounts in euros, dollars or other currencies - as long as you stay within the same country.
How often are the figures updated?
The inflation data is automatically updated as soon as new figures become available (usually monthly). You always see the most current data.
Try it Yourself
Go to the calculator page and try out the different tools. Experiment with different periods and amounts to get a better feel for the effect of inflation on your purchasing power.
Also check out the current inflation figures for the most recent data, or compare inflation between countries to see how different countries are performing.