Inflation Calculator: Understand & Beat Inflation Smartly.

Wondering how inflation affects the purchasing power of your money over time?

This is the simple and a yet powerful Inflation Calculator that can help you understand the impact of inflation and the time value of money on your savings and investments.

Just enter the current amount, expected inflation rate, and time frame to see how inflation can erode your wealth—or how smart planning can help you stay ahead.

It’s the perfect tool to plan your financial goals and ensure your money works as hard as you do!

Future & Reverse Inflation Calculator

Enter your details below to see how inflation affects your money.


 

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Why Use the Inflation Calculator?

Future Inflation Calculator
Find out how inflation erodes your wealth over time. Enter the current amount, expected inflation rate, and time frame to see how much less your money could buy in the future.

Reverse Inflation Calculator
Curious about how much AED 1,000 in 2010 is worth today? This feature helps you uncover the past purchasing power of your money, giving you a clearer picture of inflation's impact.

How Inflation Affects Your Money

Inflation is the silent force that steadily reduces the value of your money. It represents the gradual increase in the cost of goods and services, which means that over time, the same amount of money buys less.

For example, the historical average inflation rate in the UAE since 1987 is 3.10%. So if you had AED100 in 2007,  the purchasing power of your money has come down to 57.72, losing 73.24% of its value over time.

Inflation in UAE - 1987-2029 - Source - Statista (1)

Activity:

Think about these questions:

  • How much did you pay for groceries, rent, or a coffee five years ago?
  • How much are you paying for the same items today?

Chances are, the difference is significant. Inflation is like a negative compounding effect, steadily working against your money every single day.

How to Calculate Inflation Rate in UAE (and Beyond)

Our calculator is designed for UAE residents but can also be used to calculate inflation in other countries. Adjust the inflation rate based on specific country averages. For instance:

  • UAE historical average inflation: 3.10%
  • India inflation rates: Typically higher, adjust accordingly.

Check inflation rates by country.

How to Beat Inflation

The best way to combat inflation is by investing in options that provide a real return—growth that outpaces inflation.

Example

If inflation is 3.10% and your investment grows by 6%, your real return is 2.90%. This ensures your money grows in purchasing power, not just nominal value.

Investment Options to Outpace Inflation

  1. Systematic Investment Plans (SIPs) in International Funds.
  2. Lump-Sum Investments in Mutual Funds or Capital-Guaranteed Investments.
  3. Diversified portfolios tailored to inflation protection.

Take Charge of Your Financial Future

Inflation doesn’t have to erode your wealth. With smart financial planning, you can stay ahead.

Book a Discovery Call with me to explore investment options designed to outpace inflation.

Click here to book a Discovery Call Now

 

Further reading