Inflation Rate Investment Calculator

Inflation Rate Calculator

This calculator will show how the rising cost of inflation can affect the value of your investments and savings over time. The results shown are intended for educational purposes only, and may not necessarily reflect actual results obtained in real life investment situations. Enter a dollar amount below to see what the value of your current investment will be in the future. Choose a year for your investment to start and a year to complete. You can adjust the inflation rate and the annual ROI to vary the outcomes. Annual inflation rates are based on the Consumer Price Index and are published regularly on the Statistics Canada Website.

Please enter the following information:

Impact of Inflation on Investment Returns

Value of initial investment: (choose an amount to be invested and enter that value in the field to the right )
Starting point: (enter a year for the initial investment to begin. This can be past, present, or future )
Completion year: (enter another year on which you want to base your calculations. The completion year must be in the future )
Annual interest rate: (the interest rate you expect your investment to earn. The default rate of 2% is a typical bank GIC rate )
Annual rate of inflation: (the 2% default rate shown is consistent with the Consumer Price Index. You can adjust higher or lower )

Future Value of Investment Adjusted for Inflation

Effect of inflation on value of initial investment: (value of the initial investment eroded by inflation, excluding interest earned)
Total interest earned: (the total amount of interest earned, before factoring in the hidden cost of inflation)
Real interest, after inflation: (the actual amount of interest earned, once the effects of inflation have been calculated )
Realistic future value: (future value of investment once compound interest and the negative impact of inflation are factored in )

Current Investment Needed for Future Value

Enter a dollar amount below to see how much you would have to invest today to reach a specific target value in the future, based on the years and rates entered above.

DISCLAIMER: The administrator and owner of this website take no responsibility for any financial decisions made based upon the use of this calculator. The information provided by this calculator is intended solely for general information and educational purposes. Rates of return may fluctuate over time and especially for long-term investments. Final calculated results are not guaranteed to be completely accurate and are in no way endorsed, offered or guaranteed by Savii Financial Concepts. Copyright 2009 ©

Leave a Reply