BTC$76,709-0.68%ETH$2,477-1.82%SOL$99.81-1.84%XRP$1.34-1.74%XAU$4,342-0.68%XAG$64.27-0.98%S&P 500$7,657+0.86%Nasdaq 100$29,368+0.91%DAX$25,569+0.82%NVDA$218-0.03%AAPL$333+1.75%MSFT$495+0.65%TSLA$365+0.52%TSM$433+1.22%ASML$1,701+0.64%COIN$175+1.73%MOOD61GreedBTC$76,709-0.68%ETH$2,477-1.82%SOL$99.81-1.84%XRP$1.34-1.74%XAU$4,342-0.68%XAG$64.27-0.98%S&P 500$7,657+0.86%Nasdaq 100$29,368+0.91%DAX$25,569+0.82%NVDA$218-0.03%AAPL$333+1.75%MSFT$495+0.65%TSLA$365+0.52%TSM$433+1.22%ASML$1,701+0.64%COIN$175+1.73%MOOD61Greed
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What inflation does to cash

Purchasing Power

What a sum of cash buys after years of inflation, and how the same sum would have fared in gold, a stock index or bitcoin under the returns you assume.

What this tool does

Inflation is a compounding loss that nobody sends an invoice for. The calculator discounts a sum by an annual inflation rate over a number of years to show its real value, then compares holding cash with holding gold, a stock index and bitcoin at nominal returns you choose, all expressed in today’s money. The point is to make the size of the effect visible and to show how much of any asset’s return is only compensation for inflation.

How to use it

  • Enter the amount, the annual inflation rate and the number of years.
  • Set the nominal annual return you assume for gold, stocks and bitcoin, or keep the defaults.
  • Read the real value of cash and of each alternative in today’s money.

Good to know

  • Inflation rates differ by country and by the basket you buy. The default is a round number, not a forecast.
  • Past returns of every asset shown include years of losses. Real value can fall below cash.
  • The calculator ignores taxes, storage costs and fees.

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