This compound interest calculator allows you to not only calculate compound interest but to also see the effects of inflation.
Just enter the details below.
Initial Deposit
Monthly Deposits
APR interest rate:
Duration (years)
if you use yearly inflation then the result will show your true financial gain compared to now. Inflation erodes your money over time. 100 now will have less buying power in a year.
Estimated yearly inflation:
Now for something else for you to think about. Imagine you save 200 a month, for 10 years. Seems like a good thing. now imagine the value of that 200 in 10 years from now if you include infaltion at say 3%. Well in 10 years your 200 is only worth 148 compared to now. It's one reason mortgages seem to feel easier in later years. Increases to salary make mortgages feel cheaper long term as the mortgage doesn't increase by inflation like hopefully your salary does.
Really to keep the same effective saving, then the monthly deposits should increase by inflation. Save 200 a month this year, save 206 a month next year, save 212.18 a month a year later.