Question 1

What does this inflation impact calculator show?

Accepted Answer

It estimates how much purchasing power a given amount of money loses over time due to inflation, and how an investment return can offset or exceed that loss.

Question 2

What is purchasing power?

Accepted Answer

Purchasing power is the real value of money — what you can actually buy with it. If prices rise by 10% and your money stays the same, you can buy roughly 10% less.

Question 3

Does the investment return account for inflation?

Accepted Answer

The investment return you enter is nominal (before inflation). The calculator subtracts inflation to show you the real, inflation-adjusted outcome.

Question 4

Why is the high preset set at 12%?

Accepted Answer

Some economies experience sustained double-digit inflation over long periods. The high preset lets you model that scenario and see its compounding effect on purchasing power.

Question 5

Does changing the currency affect the result?

Accepted Answer

No. Currency only changes how the numbers are displayed. The inflation math stays the same regardless of which currency you choose.

Inflation Impact Calculator

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