Calculate how inflation will affect the purchasing power of your money over N years.
| Step | Formula |
|---|---|
| Purchasing power after N years | amount ÷ (1 + inflation)^years |
| Amount needed in the future | amount × (1 + inflation)^years |
The calculation uses a fixed annual inflation rate for the whole period — in reality, inflation fluctuates from year to year.
As prices rise (inflation), the same amount of money buys fewer goods/services — that's exactly what loss of purchasing power means.
Investing with a return that exceeds inflation is the most common approach — see our compound interest calculator to estimate real returns.
The EU/eurozone targets around 2% per year, but in some years (e.g. 2022-2023) inflation in Lithuania exceeded 10%. Use Eurostat/national statistics office data for precise historical figures.
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