Euro inflation calculator
Simulate the growth of your savings and set the right strategy to reach your goals.
Inflation calculator
Results
Equivalent value today
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Real purchasing power of your amount
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Cumulative inflation
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Average annual rate
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Loss of purchasing power
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These results are indicative simulations based on the Harmonised Index of Consumer Prices (HICP) published by Eurostat, and do not constitute financial advice.
Glossary
What is inflation?
Inflation is the general rise in prices over time. When prices go up, each euro buys a little less: the supermarket trolley that cost €200 costs €210 a few months later.
That is why we say inflation erodes purchasing power. The money does not disappear from your account, but it buys fewer real goods and services.
That is why we say inflation erodes purchasing power. The money does not disappear from your account, but it buys fewer real goods and services.
How is inflation measured in the euro area?
The official indicator is the Harmonised Index of Consumer Prices (HICP), compiled every month by Eurostat together with the national statistical institutes. It tracks the prices of a basket of goods and services representative of household spending, using the same method in every country, which is what makes the figures comparable across borders.
This calculator uses the annual average rate of change of the HICP, meaning the average inflation of each full calendar year as published by Eurostat. It is also the index the European Central Bank targets at 2% over the medium term.
This calculator uses the annual average rate of change of the HICP, meaning the average inflation of each full calendar year as published by Eurostat. It is also the index the European Central Bank targets at 2% over the medium term.
How does the calculator do the maths?
The formula is simple: equivalent value = starting value × (1 + each year's rate), applied year after year in a chain.
An example: if you had €1,000 in 2020 and euro area inflation was 2.6% in 2021, 8.4% in 2022, 5.4% in 2023, 2.4% in 2024 and 2.1% in 2025, then €1,000 × 1.026 × 1.084 × 1.054 × 1.024 × 1.021 comes to roughly €1,226. You would need €1,226 in 2025 to buy what €1,000 bought in 2020.
An example: if you had €1,000 in 2020 and euro area inflation was 2.6% in 2021, 8.4% in 2022, 5.4% in 2023, 2.4% in 2024 and 2.1% in 2025, then €1,000 × 1.026 × 1.084 × 1.054 × 1.024 × 1.021 comes to roughly €1,226. You would need €1,226 in 2025 to buy what €1,000 bought in 2020.
What is the difference between cumulative inflation and the average annual rate?
Cumulative inflation is the total rise in prices across the whole period. The average annual rate is the constant rate that, applied every year, would produce exactly that total rise. It is a geometric mean, not a simple average.
For the euro area, prices rose about 81% between 1997 and 2026, which works out at roughly 2.1% a year. A single bad year weighs heavily: 2022 alone added 8.4%, four times the average.
For the euro area, prices rose about 81% between 1997 and 2026, which works out at roughly 2.1% a year. A single bad year weighs heavily: 2022 alone added 8.4%, four times the average.
Why do I lose money by leaving it idle?
If your money earns less than inflation, you gain nominal euros but lose real purchasing power. Cash sitting in a current account earning nothing loses purchasing power in every year inflation is positive.
To see the opposite effect, money growing over time, try the compound interest calculator and the savings calculator.
To see the opposite effect, money growing over time, try the compound interest calculator and the savings calculator.
How can I protect my money from inflation?
No product removes inflation, but there are ways to seek returns that offset it over time:
- Savings accounts and term deposits: they reduce the loss compared with an account paying nothing, though the rate often trails inflation.
- Investing for the long run: historically, diversified equity markets have outpaced inflation over long horizons, with risk and without guarantees.
- Inflation-linked government bonds: their payments follow an inflation index, so they are designed to preserve real value rather than to beat it.
Always compare the expected net return with inflation to see what is left in real terms.
Can I use years before the euro existed?
Yes. The series starts in 1997, two years before the euro was introduced, and it runs straight through the changeover without a break.
That surprises people, but there is nothing to fix. The HICP is an index, not an amount of money. Converting every price by the same fixed rate on the same day cancels out in a ratio, so inflation in 1998 is the same number whether you measure prices in guilders, marks or euros.
The one thing to watch is the label on your own figure. If your amount is in a pre-euro currency, convert it first at the fixed rate, for example 2.20371 Dutch guilders or 1.95583 German marks to the euro, otherwise the result will be right but expressed in the wrong unit.
That surprises people, but there is nothing to fix. The HICP is an index, not an amount of money. Converting every price by the same fixed rate on the same day cancels out in a ratio, so inflation in 1998 is the same number whether you measure prices in guilders, marks or euros.
The one thing to watch is the label on your own figure. If your amount is in a pre-euro currency, convert it first at the fixed rate, for example 2.20371 Dutch guilders or 1.95583 German marks to the euro, otherwise the result will be right but expressed in the wrong unit.
Where does the data come from and how often is it updated?
The figures are the annual average rate of change of the HICP, published by Eurostat in the prc_hicp_ainr dataset. The euro area aggregate uses the changing composition series, the one Eurostat quotes in its own releases.
Because the calculation uses annual inflation, the calculator is updated once a year, in January, as soon as Eurostat publishes the figure for the previous year. The current year is shown as a provisional value based on the months already released.
Note: this tool is for information and education only. It is not financial advice or an investment recommendation. Before making financial decisions, consider your personal situation and seek professional advice if needed.
Because the calculation uses annual inflation, the calculator is updated once a year, in January, as soon as Eurostat publishes the figure for the previous year. The current year is shown as a provisional value based on the months already released.
Note: this tool is for information and education only. It is not financial advice or an investment recommendation. Before making financial decisions, consider your personal situation and seek professional advice if needed.
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