Inflation Calculator
See how inflation erodes purchasing power over time and what today's money will really be worth in the future
// What is Inflation?
Inflation is the rate at which prices rise over time. If inflation is 5%, something that costs R100 today will cost R105 next year. Your money doesn't shrink — it just buys less.
// The Rule of 72
Divide 72 by the inflation rate to estimate how many years it takes for prices to double. At 6% inflation, prices double in roughly 12 years.
// Beat Inflation
To preserve purchasing power, your investments must earn more than inflation. If inflation is 5%, you need at least 5% returns just to break even — anything above that is real growth.
// Salary vs Inflation
If your salary increases by less than inflation each year, you're effectively taking a pay cut. Negotiate raises that at least match inflation to maintain your standard of living.
// SA vs Global
South Africa's inflation has historically averaged 5-6% per year. Developed economies like the US and EU typically target 2-3%. Higher inflation means faster erosion of savings.
// Fixed Income Risk
Retirees on fixed pensions are most vulnerable to inflation. A pension of R20,000/mo today will feel like R12,000/mo in 10 years at 5% inflation. Plan for inflation-adjusted income.