Savings vs Inflation Explorer

A savings account number that goes up can still be losing value. Drag the sliders to see the interplay between your interest rate and inflation, and what your pot will really buy.

Your scenario

Money in savings today (£)

Savings interest rate4.0% / year

Inflation rate2.0% / year

Time horizon10 years

For context: the Bank of England's inflation target is 2% a year; the actual rate is published monthly by the ONS. Savings rates vary widely between accounts, so check yours.

What happens to your money

After 10 years your statement shows £14,802, worth £12,143 in today's money. Your purchasing power grows at a real rate of 1.96% a year.

After…	On your statement	In today's money
1 year	£10,400	£10,196
2 years	£10,816	£10,396
5 years	£12,167	£11,020
10 years	£14,802	£12,143

"Today's money" answers: what could this buy right now? It's the honest way to compare amounts across time. Note: the real rate is (1 + interest) ÷ (1 + inflation) − 1, not simply the difference between the two percentages.

🔒 Everything on this page is calculated on your device. Nothing you type is sent to us, stored, or shared.

This explorer needs JavaScript (it runs entirely on your device). The key idea in one line: your real return is (1 + interest) ÷ (1 + inflation) − 1 per year. If inflation is higher than your rate, your purchasing power is shrinking.

Important information

Any growth rate here is an assumption, not a forecast, a promise, or a typical result. Where you have not changed it, the figure is our default rather than your choice, and you can change it. Investments can fall as well as rise, you may get back less than you put in, and past performance is not a guide to future performance.

The content of this calculator is for informational purposes only and does not constitute financial or professional advice. It is not regulated financial, tax, mortgage, investment or legal advice, and using it does not make us your adviser.

We do not make personal recommendations. The tool shows you the result of a calculation based on the figures you enter. It does not tell you what you should do, and nothing it shows is presented as suitable for you or your circumstances.

The figures are estimates worked out by a computer program from the assumptions and information you enter. They are not a quote, an offer, or a statement of what you will actually pay or receive, and they will not reflect every part of your personal circumstances.

Please do not make a financial decision on these figures alone. Check your position against the relevant official source, or with a suitably qualified professional, before you act.

We take care to keep this tool accurate, but we cannot guarantee it is free from error or fully up to date, and so far as the law allows we cannot accept liability for any loss that comes from relying on it.