Inflation Calculator

Calculate how inflation affects the value of money over time

Last updated: August 2026

Inflation Details

£
%
Adjusted Value
£11,592.74
In 2025
Purchasing Power Loss
£1,592.74
Over 5 years

Inflation Impact

Original Value (2020)
£10,000.00
Inflation Impact
£1,592.74

Calculation Details

Time Period5 years (2020 - 2025)
Average Inflation Rate3.00% per year
Total Inflation15.93%
What £10,000 buys today£8,626.09

Understanding UK Inflation

Inflation reduces the purchasing power of money over time. The Bank of England targets an average CPI inflation rate of 2% per year. Historical UK inflation rates vary based on economic conditions, with the ONS publishing monthly CPI and RPI figures.

Reviewed by

, LLM (UK), CFP®, CIM®, PFP®. Financial planner with 18 years in banking and wealth management, holding a UK master of laws and the Canadian CFP®, CIM® and PFP® designations. Writes and reviews every calculator and article on FinanceToolz.

Last updated: August 2026. How figures are sourced, reviewed and corrected is set out in our editorial policy. This is general information, not regulated financial advice.

Sources

Every rate and threshold used by this calculator is taken from the official pages below. If a figure here disagrees with one of these, the official page is right, please tell us.