Inflation Calculator
Inflation quietly shrinks the value of cash. Enter an amount, an annual inflation assumption, and a time horizon — see how much its purchasing power falls and what nominal amount would preserve its value.
How is this calculated?
Future nominal value = amount × (1 + inflation)^years — what an amount needs to grow to. Future purchasing power = amount / (1 + inflation)^years — what the same amount will be worth in real terms. Cumulative inflation % = (factor − 1) × 100.
Frequently Asked Questions
What's the long-run Irish inflation rate?
Long-run Irish CPI averages around 2% per year. Recent years have been higher: 2022 hit ~9% in the post-pandemic energy spike, 2023–24 settled back towards 3–5%. The European Central Bank targets 2% inflation across the euro area.
Why does inflation matter for savings?
Cash in a 0%–2% deposit account loses purchasing power when inflation is above the deposit rate after DIRT. Even a 4% deposit rate is barely break-even after 33% DIRT and 2% inflation. To grow real wealth long-term, you typically need investments with return potential above inflation + tax.
How does inflation affect mortgages?
Inflation favours fixed-rate borrowers because future payments are made with cheaper money. The flip side: variable rates often rise during inflation as central banks hike to control prices. Inflation-linked salary rises help keep mortgages affordable in real terms.
Is the State Pension inflation-linked?
Not formally, but the State Pension (Contributory) is reviewed each Budget and has historically risen broadly in line with inflation. The 2026 rate is €295.80/week, up from €289.30 in 2025 — roughly tracking the cost of living.
How do I protect my money from inflation?
Diversified equity investments have historically outpaced inflation over long horizons. Inflation-linked bonds (rare for individuals in Ireland but accessible via funds) explicitly track CPI. Real assets — property, your own home, productive business — also tend to keep pace. Keep a cash buffer for the short term, invest the rest.
Last updated: May 2026 · Rates sourced from Revenue