Purchasing power calculator
A snowball left aside melts. See how much inflation melts your money, and how much a return makes up for it.
Results are a scenario based on the assumptions you enter, not a certain result or investment advice. The calculation runs in your browser; your numbers are not sent anywhere.
| Year | In today’s money | Same basket costs | Loss |
|---|---|---|---|
| 1 | ₺76,923 | ₺130,000 | 23% |
| 2 | ₺59,172 | ₺169,000 | 41% |
| 3 | ₺45,517 | ₺219,700 | 54% |
| 4 | ₺35,013 | ₺285,610 | 65% |
| 5 | ₺26,933 | ₺371,293 | 73% |
How is it calculated?
The value in today’s money is: amount × ((1 + return) ÷ (1 + inflation))^years. With a 0% return this is the amount divided by inflation: at 30% inflation, ₺100,000 is worth ₺76,923 of today’s money a year later.
The same basket’s price is today’s amount growing by inflation each year: amount × (1 + inflation)^years.
Purchasing power lost is how much the value in today’s money fell compared with today’s amount. If the return equals inflation, nothing is lost; if it beats inflation, your purchasing power grows.
Inflation is assumed to be the same every year. Real inflation varies by year and by spending basket.
Frequently asked questions
What is purchasing power?
It is the amount of goods and services your money can buy. As prices rise, the same amount buys less; your purchasing power falls even though the amount stays the same.
How do I protect my money from inflation?
To keep your purchasing power, your savings need to earn at least as much as inflation. Which option suits you depends on your risk preference and time frame; this is not investment advice.
What inflation rate should I enter?
The official yearly rate is a good start, but your own basket may rise differently. Try a few rates based on how your big items, such as rent, food or education, are rising.
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