How it is calculated
Future price = amount × (1 + i)^n Purchasing power = amount ÷ (1 + i)^nwhere i is annual inflation and n the years. Something costing 100 today costs more tomorrow, and 100 in hand buys less.
Your real return ≈ nominal return − inflation; precisely (1+r)/(1+i) − 1.
Worked example
At 3% inflation, what costs 10,000 today will cost about 13,439 in 10 years, and 10,000 kept in a drawer will buy only what 7,441 buys today.
Frequently asked questions
What is inflation in my country?
National statistics offices publish it — e.g. Morocco’s HCP, Saudi Arabia’s GASTAT, Egypt’s CAPMAS.
How do I protect savings?
Invest part of them for a long-term return above inflation, within your risk tolerance.
Is inflation constant?
No; the calculator assumes a steady average for estimation.