Inflation Calculator for United Kingdom
See how inflation erodes purchasing power and what money will be worth in the future.
Region: United Kingdom (GBP)
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Quick Tip
Use 2% for the Bank of England target and a higher figure to stress-test your plans.
About This Tool
Why use Inflation Calculator?
The Office for National Statistics publishes UK inflation every month, and the headline measure is the Consumer Prices Index (CPI). The Bank of England's inflation target, set by the government, is 2% CPI.
Inflation matters for pay rises, pensions, savings and long-term goals. If your savings rate after tax is below inflation, the real value of your money falls. Use the calculator to put future costs in today's terms or to see what a pound today may be worth years from now.
Key Benefits
Future prices in pounds
Estimate what today's costs could be after several years of inflation.
Real value of savings
See how much buying power a fixed sum loses over time.
Pay rise check
Compare a salary increase with inflation to see whether you are better off.
How to use Inflation Calculator
- 1
Use 2% for the Bank of England target and a higher figure to stress-test your plans.
- 2
Enter an amount of money.
- 3
Add an expected annual inflation rate.
- 4
Choose the number of years.
- 5
Review the future cost, today's equivalent value and total inflation.
Best use cases
Estimate how much income you will need in retirement to keep today's lifestyle.
Check whether your savings rate is actually beating inflation.
Work out what a pay rise needs to be just to keep pace with prices.
Estimate future school, university or wedding costs.
Inflation Calculator FAQs
What is the difference between CPI and RPI?
CPI is the UK's headline inflation measure and the basis of the Bank of England target. RPI is an older measure that still appears in some contracts and index-linked products, and it usually runs higher than CPI.
What inflation rate should I use for UK planning?
The 2% target is a sensible long-run baseline, but it is wise to test a higher rate as well, because inflation can stay above target for extended periods.
How does inflation affect my pension or savings?
Inflation reduces what a fixed amount of money can buy. Compare your return after tax and fees with inflation to understand your real growth.
Which currency does this inflation calculator use?
Amounts are shown in British Pounds (GBP). The formulas are the same everywhere, so you can switch to another country version if you need a different currency.
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