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Savings & inflation
Is your savings interest beating inflation?
Your bank balance can rise while its buying power falls. Compare a savings rate with an inflation assumption over the same period.
By QuidCast · Published 15 September 2026 · Educational estimates
Explore your numbers
All starting figures are examples. Replace them with your own assumptions. Calculations run on your device; inputs are not sent to QuidCast.
A worked example
£10,000 earning 3% a year grows to £11,592.74 after five years. With inflation averaging 4%, that has the buying power of £9,528.39 today: a £471.61 reduction in purchasing power. These are constant-rate examples, not forecasts.
How the calculation works
Future balance = starting savings × (1 + savings rate) raised to the number of years. Divide that balance by (1 + inflation) raised to the same number of years to express it in today’s money. Rates are converted from percentages to decimals.
Assumptions and limits
This assumes annual compounding, no deposits or withdrawals, no fees and no tax on interest. Both rates stay constant. It does not model investments or predict inflation. Your personal spending basket may experience a different inflation rate from the national measure.
This tool provides general educational estimates, not personal financial advice.
Common question
Why not simply subtract inflation from the interest rate?
Subtraction is a useful rough estimate. This calculator uses the ratio of growth factors, so it accounts for compounding and expresses the result consistently in today’s money.