Inflation calculator: how the latest rate will affect your savings

Inflation calculator: how the latest rate will affect your savings

Danielle Richardson

Wed, February 18, 2026 at 8:48 PM GMT+9 2 min read

How much inflation is costing you

This calculator shows the current rate of Consumer Prices Index (CPI) inflation will affect the return on your savings.

Inflation calculator

How to use this calculator

Type in the amount you have in a savings account or cash Isa, and the interest rate you’re currently receiving.

Press the “Calculate” button to see the result.

How it works

This calculator works by figuring out how much interest your savings will earn over the course of a year – this assumes interest is paid annually, and the interest rate and amount of savings remains the same.

This is pitted against the most recent CPI measure of inflation, as reported by the Office for National Statistics.

Assuming inflation remains steady, it then shows the value your savings will lose in real terms due to inflationary price increases.

The calculator will also show you what the cumulative impact of these losses will be for each of the next five years.

What is this calculator useful for?

The calculator can help you gauge whether or not it’s worth switching to a savings account or cash Isa offering a higher rate of interest.

This is particularly important when inflation is high, but in general it’s a good idea to make sure you’re taking advantage of the best savings rates to reduce the effect of price increases. If you don’t, put simply, your money won’t buy as much as it could the previous year.

You can also use the calculator to see how much of a difference it would make to switch savings accounts for a better rate.

For example, someone with £20,000 in an account paying today’s average easy-access rate, according to Moneyfacts, of 2.42pc would make a “real terms” loss of £112.62 after a year because of inflation. They would earn £484 in interest, but their pot would effectively be worth just £19,887.38 after a year when adjusted for inflation.

Switching to the top easy-access savings rate which, according to today’s tables showing the best easy access savings accounts, is from Cahoot and pays 5pc, they’d make an inflationary increase of £388.35, based on actual interest of £1,000.

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