Purchasing power calculator (inflation impact)
See what your money will be worth in the future at an estimated inflation rate — and how much you'll need to keep the same purchasing power.
Inflation erodes idle money: the nominal amount stays the same but buys less. Use the average inflation you expect (the country's target is a good starting point).
How the calculation works
Future purchasing power is today's amount divided by the accumulated inflation factor: power = amount ÷ (1 + inflation)ⁿ. At 4%/yr for 10 years, $1,000 buys the equivalent of $676 today — a ~32% loss. To keep purchasing power, money must earn at least the inflation rate.
Examples
- 4%/yr for 10 years: R$1,000 buys the equivalent of ~R$676 today.
- 6%/yr for 20 years: money loses ~69% of its purchasing power.
Frequently asked questions
Which inflation rate should I use?
For planning, use the country's inflation target or the recent-years average. The result is an estimate — actual inflation varies.
Does investing solve it?
If returns beat inflation, yes — the excess is the "real return". Matching inflation only preserves purchasing power.
Why was R$100 worth more 10 years ago?
Because prices rose over the period. The same bill buys less today — inflation eroding purchasing power year after year.
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Updated on July 5, 2026 · by Rafael Rossi · Methodology & sources