This calculator works out how much your money's purchasing power erodes over time at a given inflation rate, compounded annually, showing you the real, inflation-adjusted future value.
Enter your current amount, expected annual inflation rate, and number of years, and the calculator returns the eroded purchasing power, worth considering alongside how the repo rate factors into monetary policy.
This calculator is for educational purposes only. Check Stats SA for the current official CPI figure.
The SARB targets inflation between 3-6%, with the current rate published monthly by Stats SA based on the CPI, check the latest published figure for the most accurate current rate rather than relying on a fixed historical average.
Yes, inflation compounds year over year just like investment returns, this calculator applies your entered rate compounded across your chosen number of years, not a simple flat percentage multiplied by years.
Cash that isn't earning a return above the inflation rate is losing real purchasing power over time, even without any market losses, this is part of why some traders view holding excess cash as carrying its own opportunity cost.
This calculator specifically shows value erosion (the same Rand amount buying less over time), our Compound Growth Calculator shows value growth (an investment increasing), you can use both together to see your real, inflation-adjusted returns.
Yes, inflation rates vary by country based on local economic conditions, South Africa's has historically run higher than developed economies like the US or UK, worth factoring in specifically when comparing purchasing power across currencies.