Skip to content
Calculadora Capital

Inflation Calculator

Inflation steadily reduces what your money can buy. Use the calculator to see how much an amount will be worth, in purchasing power, a few years from now, and how much something you pay for today will cost in the future.

Use an average annual rate. The ECB inflation target is around 2%; check INE's CPI for recent figures.

Real value (purchasing power)
€820.35
Purchasing power lost
€179.65
Equivalent future cost€1,218.99
Cumulative inflation21.9%

Educational estimate, not financial advice. Future inflation is uncertain and may vary.

Video: how to use the calculator

What inflation is

Inflation is the general, ongoing rise in prices. When prices rise, each euro buys a little less: that is the loss of purchasing power. In Portugal, inflation is measured by the Consumer Price Index (CPI/IPC), published by INE.

How the loss of purchasing power is calculated

Inflation compounds over time: an average annual rate i over n years multiplies prices by (1 + i)^n. The real value of an amount in n years is Amount ÷ (1 + i)^n; the future cost of something that costs that amount today is Amount × (1 + i)^n. The calculator uses your own average annual rate (not a fixed figure) so you can test optimistic and pessimistic scenarios.

Why this matters for your savings

Money left idle, or earning less than inflation, quietly loses real value. If an investment returns 2% net and inflation is 2%, the real gain is roughly zero. Comparing expected return with expected inflation is what shows whether your savings are actually growing.

Worked example

With €1,000 and average inflation of 2% a year over 10 years, prices rise about 21.9% in total. That €1,000 ends up worth roughly €820 in purchasing power, a loss of about €180. Put another way, something that costs €1,000 today will cost around €1,219 in 10 years.

Frequently asked questions

What is purchasing power?
It is the amount of goods and services a given sum can buy. With inflation, the same sum buys less over time, even though the number of euros has not changed.
Which inflation rate should I use in the calculator?
For the long run, many people use a figure close to the European Central Bank's inflation target (around 2% a year). You can check recent inflation in INE's CPI and test several scenarios: the calculator accepts any average annual rate.
Does inflation affect term deposits and savings?
Yes. What matters is the real return: the net interest minus inflation. If a deposit earns 2.16% net and inflation is 2%, the real gain is almost zero. That is why you should always compare a return with expected inflation.

Related calculators & reading

Sources

Author: Thorben Rasmus Idel · Reviewed by: Nahar Geva · Last reviewed: 2026-05-31