Calculate the effects of inflation on investments and savings.
The results shown are intended for reference only, and do not necessarily reflect results that would be obtained in actual investment situations.
To calculate how much the cost of a fixed "basket" of consumer purchases has changed using monthly consumer price index (CPI) data from 1914 to now, see the Inflation Calculator.
Future value of current investment
- Enter a dollar value of an investment at the outset.
- Input a starting year and an end year.
- Enter an annual interest rate and an annual rate of inflation.
- Click Calculate.
Current investment needed for future value
- Enter a dollar value you want your investment to attain in the future.
- Click Calculate
Definitions
Value of initial investment
Enter the amount of money you are investing.
Start year
Enter the year in which the money was first invested.
End year
Enter the future year on which you want to base your calculation.
Annual interest rate
Enter the annual compound interest rate you expect to earn on the investment. The default value (%) equals the rate currently paid on five-year Guaranteed Investment Certificates.1Annual rate of inflation
Enter a projected annual rate of inflation. The default value (2.0%) equals the mid-point of the Bank's inflation-control target range.Effect of inflation on value of initial investment
The value of the initial investment after the effects of inflation have been calculated, but excluding interest.
Total interest earned
The total amount of interest earned, before inflation.
Interest earned, after inflation
The total amount of interest earned, after the effects of inflation have been calculated.
Total future value
The total value of the investment after the effects of inflation on the principal and interest have been calculated.
Target future value of investment
Enter the future amount of money you want to have.
Current investment needed for future value
This displays the amount you would have to invest to achieve your future target, taking into account the effects of inflation.